Question

The table below depicts the prices and total costs a local​ used-book store faces. The bookstore competes with a number of similar​ stores, but it capitalizes on its location and the​ word-of-mouth reputation of the coffee it serves to its customers. Calculate the​ store's total​ revenue, total​ profit, marginal​ revenue, and marginal cost at each level of​ output, beginning with the first unit

​(Enter

all values rounded to the nearest

penny.​)

Output	Price per Book​ ($)	Total Costs​ ($)	Total Revenue​ ($)	Total Profit​ ($)	Marginal Revenue​ ($)	Marginal Cost​ ($)
0	8.008.00	2.002.00	nothing	nothing	minus−	minus−
1	7.757.75	5.255.25	nothing	nothing	nothing	nothing
2	7.507.50	7.507.50	nothing	nothing	nothing	nothing
3	7.257.25	9.609.60	nothing	nothing	nothing	nothing
4	7.007.00	12.1012.10	nothing	nothing	nothing	nothing
5	6.756.75	15.6015.60	nothing	nothing	nothing	nothing
6	6.506.50	19.7519.75	nothing	nothing	nothing	nothing
7	6.256.25	24.5024.50	nothing	nothing	nothing	nothing

Answer 1

Q	P	TC	TR=(P)(Q)	Profit= TR-TC	MR=Change in TR	MC= Change in TC
0	8	2	0	-2	-	-
1	7.75	5.25	7.75	2.50	7.75	3.25
2	7.50	7.50	15	7.50	7.25	2.25
3	7.25	9.60	21.75	12.15	6.75	2.10
4	7	12.10	28	15.9	6.25	2.50
5	6.75	15.60	33.75	18.15	5.75	3.50
6	6.50	19.75	39	19.25	5.25	4.15
7	6.25	24.50	43.75	19.25	4.75	4.75