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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