Paulina sells beef in a competitive market where the price is $5 per pound. Her
ID: 1202062 • Letter: P
Question
Paulina sells beef in a competitive market where the price is $5 per pound. Her total revenue and total costs are given in the table below.
Instructions: Round your answers to the nearest dollar and include a negative sign if appropriate.
a. Fill out the table.
b. At what quantity does marginal revenue equal marginal cost?
_____________pounds.
of beef
(lbs.) Total
revenue
($) Total
cost
($) Profit
($) Marginal revenue
($) Marginal cost
($) Marginal profit
($) 0 0 4 — — — 1 5 6 2 10 9 3 15 14 4 20 22
Explanation / Answer
(b) At 3 pounds of beef does marginal revenue equal marginal cost
of beef
(lbs.) Total
revenue
($) Total
cost
($) Profit
($) Marginal revenue
($) Marginal cost
($) Marginal profit
($) 0 0 4 -4 — — — 1 5 6 -1 5 2 3 2 10 9 1 5 3 2 3 15 14 1 5 5 0 4 20 22 -2 5 8 -3