This business/management problem is solved step by step below, with detailed explanations to help you understand the method and arrive at the correct answer.
ScanSolve AI Answer
Hey Maya, good to see you again. Step 1: Understand the formulas for Total Revenue (TR), Average Revenue (AR), and Marginal Revenue (MR). • Total Revenue (TR) = Price (P) × Quantity Sold (Q) • Average Revenue (AR) = Total Revenue (TR) / Quantity Sold (Q) • Marginal Revenue (MR) = Change in Total Revenue (TR) / Change in Quantity Sold (Q) Step 2: Calculate TR, AR, and MR for each quantity. For Q = 0: TR = 50 × 0 = 0 AR = undefined (or -) MR = not applicable (or -) For Q = 1: TR = 50 × 1 = 50 AR = (50)/(1) = 50 MR = (50 - 0)/(1 - 0) = 50 For Q = 2: TR = 50 × 2 = 100 AR = (100)/(2) = 50 MR = (100 - 50)/(2 - 1) = 50 For Q = 3: TR = 50 × 3 = 150 AR = (150)/(3) = 50 MR = (150 - 100)/(3 - 2) = 50 For Q = 4: TR = 50 × 4 = 200 AR = (200)/(4) = 50 MR = (200 - 150)/(4 - 3) = 50 Step 3: Complete the table with the calculated values. | Price (P) | Quantity Sold (Q) | TR | AR | MR | | :-------- | :---------------- | :--- | :--- | :--- | | 50 | 0 | 0 | - | - | | 50 | 1 | 50 | 50 | 50 | | 50 | 2 | 100 | 50 | 50 | | 50 | 3 | 150 | 50 | 50 | | 50 | 4 | 200 | 50 | 50 | The completed table is: |c|c|c|c|c| Price (P) & Quantity Sold (Q) & TR & AR & MR \\ 50 & 0 & 0 & - & - \\ 50 & 1 & 50 & 50 & 50 \\ 50 & 2 & 100 & 50 & 50 \\ 50 & 3 & 150 & 50 & 50 \\ 50 & 4 & 200 & 50 & 50 \\ Send me the next one 📸