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ECON 213 Principles of Economics Pearl owns a company that produces Super Toys Answer

MEDGAR EVERS COLLEGE (CUNY)       
SCHOOL OF BUSINESS       
ECON 213 PRINCIPLES OF MICROECONOMICS       
WINTER 2010       
Labor Output Total Cost Marginal Average Total Revenue  
  (TC) Cost (MC) Cost P=125  
0 0 $3,000.00     $           –     
1 10 $4,250.00  $125.00  $425.00  $1,250.00   
2 25 $5,500.00  $83.33  $220.00  $3,125.00   
3 45 $6,750.00  $62.50  $150.00  $5,625.00   
4 70 $8,000.00  $50.00  $114.29  $8,750.00   
5 95 $9,250.00  $50.00  $97.37  $11,875.00   
6 115 $10,500.00  $62.50  $91.30  $14,375.00   
7 133 $11,750.00  $69.44  $88.35  $16,625.00   
8 149 $13,000.00  $78.13  $87.25  $18,625.00   
9 164 $14,250.00  $83.33  $86.89  $20,500.00   
10 174 $15,500.00  $125.00  $89.08  $21,750.00   
11 182 $16,750.00  $156.25  $92.03  $22,750.00   
12 188 $18,000.00  $208.33  $95.74  $23,500.00   
13 192 $19,250.00  $312.50  $100.26  $24,000.00   
       
Pearl owns a company that produces Super Toys.  The table above shows that       
Pearls’ Fixed Cost is $3000.00. Pearl pays $1,250 for each unit of labor. Marginal       
and Average Costs of production are show n in the table. If Pearl conducts       
business in a Perfectly Competitive Market where the price of each toy sold is       
$125.00:       
What is Pearl’s Marginal Revenue for each additional unit of Super Toy sold? 

 

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