Marginal Revenue

I Student Name:

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Complete the following question in the spaces provided. The following are cost and revenue data for the Ruby Ring Store If the company charges this price per

ring

It will sell this many rings per week

$ 5.00 4.50 4.00 3.50 3.00 2.50 2.00

0 150 300 450 600 750 900

The company's fixed costs are $300 per week and its variable costs are shown in the following table:

Q 0 150 300 450 600 750 900 a) b) c) d) e) f)

FC 300

366 3>QD

loo

IGQ loo ICffl

vc

TC

0 850

300

1550 2050 2500 3100 4300

lt>50

U5Cs

AVC

Und

s~±

AC

MC

uncK -

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2^00

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Complete the eight remaining columns in the table above. Place the marginal cost and marginal revenue answers on the line between quantities. Graph the AVC, AC, MC, AR, and the MR curves on the attached Graph Paper. How much output will be produced? What is the profit at this level? What type of competition is this?

TR

o

MR

Profit -300

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