Question 16 AMSN.com Hollnil Outlo X Chambe\'lain Urne, sity × Week 3: MEL Hon w

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Question 16

AMSN.com Hollnil Outlo X Chambe'lain Urne, sity × Week 3: MEL Hon wurk × @ Do Homework Pamela HdX www.google.com/ CSearch Principles of Economics Pamela Harris 11/10/17 12:23 PM Homework: Week 3 Homework 35 pts Save Score: 0 of 1 pt 16 of 35 (14 complete) HW Score: 39.05%, 13.67 of 35 pts Instructor Assignable 5 Question Help Out of This World is the only private rocket ride in the nation. The table sets out the demand schedule for rides rides and the cost schedule for producing the rides. Calculate Out of This World's for all rides. Price dollars per Quantity Total cost dollars per g price, output and economic profit if it charges a single price per day) 30 100 200 300 400 500 600 700 800 1,000 1,900 2,800 3,700 4,600 5,500 6,400 7,300 8,200 Out of This World's profit-maximizing output is rides a day. 24 21 18 15 12 Out of This World's profit-maximizing price is ride Answer to 2 decimal places Enter your answer in the edit fields and then click Check Answer. Clear All Check Answer 16h Type here to search :23 PM 11/10/2017

Explanation / Answer

TR = P x Q

TR (n units) - TR ((n-1) units) = MR (nth unit)

TC (n units) - TC ((n-1) units) = MC (nth unit)

Profit is maximized where MR = MC

Qm = 400 rides per day and Pm = $18 per ride

Profit = TR - TC = $2600 (read from the table above)

P ($) Q TR ($) MR ($) TC ($) MC ($) 30 0 0 1000 27 100 2700 2700 1900 900 24 200 4800 2100 2800 900 21 300 6300 1500 3700 900 18 400 7200 900 4600 900 15 500 7500 300 5500 900 12 600 7200 -300 6400 900 9 700 6300 -900 7300 900 6 800 4800 -1500 8200 900

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