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Given a table with Output (Q), Price (P), Total Cost (TC), and Marginal Cost (MC), calculate Total Revenue (TR) and Marginal Revenue (MR) for each output level.
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To complete the table, we will use the following formulas:
- Total Revenue (TR) = Price (P) Output (Q)
- Marginal Revenue (MR) = (Change in Total Revenue from the previous unit)
- Marginal Cost (MC) = (Change in Total Cost from the previous unit)
Note: There appears to be a typo in the original table for Total Revenue (TR) at Output (Q) = 2. Based on the formula TR = P Q, the TR for Q=2 should be , not 36. We will use the corrected value of 30 for our calculations.
Step 1: Calculate Total Revenue (TR) for each output level.
Step 2: Calculate Marginal Revenue (MR) for each output level using the corrected TR values.
Step 3: Calculate Marginal Cost (MC) for each output level.
Step 4: Present the completed table.
The completed table is shown below:
\begin{array}{|c|c|c|c|c|c|}
\hline
Output (Q) & Price (P) & Total Revenue (TR) & Marginal Revenue (MR) & Total Cost (TC) & Marginal Cost (MC) \\
\hline
0 & 17 & 0 & - & 10 & - \\
\hline
1 & 16 & 16 & 16 & 18 & 8 \\
\hline
2 & 15 & 30 & 14 & 23 & 5 \\
\hlineStill stuck on this one?
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