Quantity Total Revenue Total Cost 0 $0 $10 1 $9 $14 2 $18 $19 3 $27 $25 4 $36 $3
ID: 2495879 • Letter: Q
Question
Quantity
Total Revenue
Total Cost
0
$0
$10
1
$9
$14
2
$18
$19
3
$27
$25
4
$36
$32
5
$45
$40
6
$54
$49
7
$63
$59
8
$72
$70
9
$81
$82
Output
Total Cost
0
$5
1
$10
2
$12
3
$15
4
$24
5
$40
COSTS
REVENUES
Quantity
Produced
Total
Cost
Marginal
Cost
Quantity
Demanded
Price
Total
Revenue
Marginal
Revenue
0
$0
--
0
$80
--
1
$50
1
$80
2
$102
2
$80
3
$157
3
$80
4
$217
4
$80
5
$285
5
$80
6
$365
6
$80
7
$462
7
$80
8
$582
8
$80
Quantity
Total Cost
Marginal Cost
Price
Total Revenue
Marginal Revenue
0
$5.00
---
$3.25
---
1
$5.50
$3.25
2
$6.50
$3.25
3
$8.00
$3.25
4
$10.00
$3.25
5
$12.50
$3.25
6
$15.50
$3.25
7
$19.00
$3.25
8
$23.00
$3.25
COSTS
REVENUES
Quantity
Produced
Total
Cost
Marginal
Cost
Quantity
Demanded
Price
Total
Revenue
Marginal
Revenue
0
$100
--
0
$120
--
1
$150
1
$120
2
$202
2
$120
3
$257
3
$120
4
$317
4
$120
5
$385
5
$120
6
$465
6
$120
7
$562
7
$120
8
$682
8
$120
Quantity
Total Revenue
Total Cost
0
$0
$3
1
$7
$5
2
$14
$9
3
$21
$15
4
$28
$23
5
$35
$33
6
$42
$45
7
$49
$59
Output
Marginal Cost
0
--
1
$5
2
$10
3
$15
4
$20
5
$25
Quantity
Total Cost
Marginal Cost
Price
Total Revenue
Marginal Revenue
0
$5.00
---
$3.25
---
1
$5.50
$3.25
2
$6.50
$3.25
3
$8.00
$3.25
4
$10.00
$3.25
5
$12.50
$3.25
6
$15.50
$3.25
7
$19.00
$3.25
8
$23.00
$3.25
Quantity
Total Revenue
12
$132
13
$143
14
$154
15
$165
16
$176
Marginal
Marginal
Quantity
Cost
Revenue
12
$5
$9
13
$6
$9
14
$7
$9
15
$8
$9
16
$9
$9
17
$10
$9
Quantity
Total Revenue
0
$0
1
$7
2
$14
3
$21
4
$28
Question 2. 2. Marcia is a fashion designer who runs a small clothing business in a competitive industry. Marcia specializes in making designer dresses. Marcia sells 10 dresses per month. Her monthly total revenue is $5,000. The marginal cost of making a dress is $400. In order to maximize profits, Marcia should (Points : 5) make more than 10 dresses per month.make fewer than 10 dresses per month.
continue to make 10 dresses per month.
We do not have enough information with which to answer the question.
Explanation / Answer
Since Q1 is incomplete, Q2 is answered below.
The correct option is A : Make more than 10 dresses per month.
Explanation : - Revenue per dress = $ 5000/10
Revenue per dress = Price = $ 500
Marginal cost for 10 dresses = $ 400
Since optimal production occurs at the point P = MC, and here P >MC so Maria needs to increase their output to reach it at the point P = MC
Thus, correct option is (a)