« previous next »

Author Question: How is total revenue calculated? If a firm sells 350 units of a product at a price of 8 each, what ... (Read 27 times)

cartlidgeashley

  • Hero Member
  • *****
  • Posts: 572
on: Jun 29, 2018
How is total revenue calculated? If a firm sells 350 units of a product at a price of 8 each, what is the firm's total revenue?
 
  What will be an ideal response?

Question 2

When Peter's Pizza Company produces 50 pizzas, its average total cost is 8 . The marginal cost of the 51st pizza is 7 . If the firm chooses to produce the 51st pizza, what will happen to average total cost? Explain.
 
  What will be an ideal response?


CAPTAINAMERICA

  • Sr. Member
  • ****
  • Posts: 325
Reply #1 on: Jun 29, 2018
Answer to Question 1

Total revenue is calculated by taking the quantity of a product sold and multiplying by its price. Thus, the firm's total revenue is 350  8 = 2,800.

Answer to Question 2

If the firm decides to produce the 51st pizza, its average total cost will fall because the marginal cost is lower than the average total cost.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Throughout history, plants containing cardiac steroids have been used as heart drugs and as poisons (e.g., in arrows used in combat), emetics, and diuretics.

Did you know?

Less than one of every three adults with high LDL cholesterol has the condition under control. Only 48.1% with the condition are being treated for it.

Did you know?

It is widely believed that giving a daily oral dose of aspirin to heart attack patients improves their chances of survival because the aspirin blocks the formation of new blood clots.

Did you know?

As the western states of America were settled, pioneers often had to drink rancid water from ponds and other sources. This often resulted in chronic diarrhea, causing many cases of dehydration and death that could have been avoided if clean water had been available.

Did you know?

There can actually be a 25-hour time difference between certain locations in the world. The International Date Line passes between the islands of Samoa and American Samoa. It is not a straight line, but "zig-zags" around various island chains. Therefore, Samoa and nearby islands have one date, while American Samoa and nearby islands are one day behind. Daylight saving time is used in some islands, but not in others—further shifting the hours out of sync with natural time.

Population predictions for 2000–2050, using three different total fertility rates ( Population predictions for 2000–2050, using three different total fertility rates (
Total hip prosthesis. Total hip prosthesis.
Percentage of Foreign-Born Whites and Native Whites of Foreign or Mixed Parentage in Total Populatio Percentage of Foreign-Born Whites and Native Whites of Foreign or Mixed Parentage in Total Populatio
Wheat and Cotton Prices and Consumer Price Indexes, 1865–1896 Wheat and Cotton Prices and Consumer Price Indexes, 1865–1896
The net price of an article is $79.84. What is the list price if a discount of 23% was allowed? The net price of an article is $79.84. What is the list price if a discount of 23% was allowed?
Total parenteral nutrition through a catheter in the right subclavian Total parenteral nutrition through a catheter in the right subclavian
Video: Rena arc construction

For a complete list of videos, visit our video library