Question

Exhibit 24-4 Price Quantity Demanded Total Fixed Cost Total Variable Cost Total Revenue Total Cost Marginal Revenue Marginal Cost $50 0 $8 $0 (C) (H) 45 1 8 20 (D) (I) (L) (R) 40 2 (A) 30 (E) (J) (M) (S) 35 3 8 55 105 63 (N) (T) 30 4 8 (B) (F) 93 (P) (U) 25 5 8 125 (G) (K) (Q) (V) Refer to Exhibit 24-4. What dollar amounts go in blanks (F), (G), (H), (I), and (J), respectively

Answer 1

Answer:

F = Total Revenue at 4 units

= Price * Quantity demanded

= 30 * 4

= $120

G = Total Revenue at 5 units

= Price * Quantity demanded

= 30 * 5

= $150

H = Total Cost at 0 units

= Fixed Costs + Variable Costs

= 8 + 0

= $8

I = Total Cost at 1 unit

= Fixed Costs + Variable Costs

= 8 + 20

= $28

J = Total Cost at 2 units

= Fixed Costs + Variable Costs

Fixed costs are fixed at $8 so (A) is $8

= 8 + 30

= $38