Revenues - numerical
The following table of data represents a business in operation.
(i) Average revenue
(ii) Marginal revenue
(iv) Marginal cost
(v) Average cost
Plot all the data on one graph and determine the profit maximising output. Confirm that at this output, MC = MR.
A firm is selling 5 units of its product, and has the following cost and revenue figures.
(i) the firm's average revenue and price
(ii) the firm's profit level.
b) Is the firm operating below or above its profit maximising output?
c) Determine the new total revenue and profit at the new level of output and sales.
The following table shows the sales and revenue data for a firm selling its product.
Determine the firms TR, MR and AR over this range of output. Plot the firm's Revenue curves and show where the firm maximises its sales revenue.
Distinguish between normal and supernormal profits.
Who decides what level of profit is normal?
Explain the difference between profit and money.
What is a windfall profit?
What is the difference between the average revenue of a product and its price?
Why do businesses aim to make a profit?
The following table of data represents a business in operation and is used for the following series of multiple-choice questions
What is the average revenue for the firm at an output of 6 units?
What is the marginal revenue obtained from selling the 4th unit?
Profit maximising output
The firms profit maximising output is:
What is the marginal revenue obtained from selling the 7th unit?
The firm will maximise its revenue if it sells: