Academic Integrity: tutoring, explanations, and feedback — we don’t complete graded work or submit on a student’s behalf.

Given the information in the table at right, calculate the dry cleaner\'s margin

ID: 1129284 • Letter: G

Question

Given the information in the table at right, calculate the dry cleaner's marginal revenue (MR) and marginal cost (MC) at each output level. (Your answer should be rounded to the nearest cent.)

Given the information in the table at right, calculate the dry cleaner's marginal revenue (MR) and marginal cost (MC) at each output level. (Your answer should be rounded to the nearest cent.) Output Price (Suits per Total Cleaned) Suit ($) Costs (S) Revenue (S) MC (S) MR Total 12.00 3.00 11.50 6.00 11.00 8.50 10.50 10.50 10.00 11.50 1.50 13.50 47,5o 9.00 20.00 8.50 28.00 59.50 8.00 32.00 64.00 0.00 11.50 22.00 31.50 40.00 54.00

Explanation / Answer

MC = Change in total cost (TC) / Change in output (Q)

MR = Change in total revenue (TR) / Change in output (Q)

Q TC ($) TR ($) MC ($) MR ($) 0 3.00 0.00 3.00 11.50 1 6.00 11.50 2.50 10.50 2 8.50 22.00 2.00 9.50 3 10.50 31.50 1.00 8.50 4 11.50 40.00 2.00 7.50 5 13.50 47.50 6.50 6.50 6 20.00 54.00 8.00 5.50 7 28.00 59.50 4.00 4.50 8 32.00 64.00