Question

6 5 pts each THE FOLLOWING TABLE FOR IAN'S MOWING SERVICE IS INCOMPLETE. FILL IN THE MISSING INFORMATION AND ANSWER THE NEXT 2 QUESTIONS #lawns mowed/day $9.00 total revenue profit $3.60 total profit revenue loosewow total costs 7.00 9.00 10.50 12.50 15.00 18.00 22.00 28.00 36.00 46.00 9 1 CALCULATE TOTAL REVENUE AND PROFIT WHEN THE MARKET PRICE IS $9.00. 2 CALCULATE TOTAL REVENUE AND PROFIT WHEN THE MARKET PRICE IS $3.60. USING THE TOTAL COST INFORMATION, CALCULATE MARGINAL COST AND DETERMINE THE NUMBER OF LAWNS MOWED AT $9.00 AND AT $3.60 WHEN THE MARKET PRICE IS $9.00, IAN WILL MAXIMIZE HIS PROFITS OR LAWNS MINIMIZE HIS LOSSES BY MOWING WHEN THE MARKET PRICE IS $3.60, IAN WILL MAXIMIZE HIS PROFITS OR MINIMIZE HIS LOSSES BY MOWING

Answer 1

		$9		$3.6
Lawns mowed per day	Total cost	Total Revenue	Profit	Total revenue	Profit
0	7	0	-7	0	-7
1	9	9	0	3.6	-5.4
2	10.5	18	7.5	7.2	-3.3
3	12.5	27	14.5	10.8	-1.7
4	15	36	21	14.4	0.6
5	18	45	27	18	0
6	22	54	32	21.6	-0.4
7	28	63	35	25.2	-2.8
8	36	72	36	28.8	-7.2
9	46	81	35	32.4	-13.6

When the market price is $9, Ian will maximise profits by mowing 8 lawns.

When the market price is $3.6, Ian will maximise profits by mowing 4 lawns.