03.05Marginal Cost Analysis DataText Version

Quantity	Price (in whole dollars)	Total Revenue	Marginal Revenue	Total Cost	Marginal Cost	Profit (or loss)
0	42	0	0	35		-35
1	41	41	41	68	33	-27
2	40	80	39	94	26	-14
3	39	117	37	107	13	10
4	38	152	35	114	7	38
5	37	185	33	129	15	56
6	36	216	31	180	51	36
7	35	245	29	235	55	10
8	34	272	27	296	61	-24

Step Four:Create a graph of the data.Quantity is along the x-axis and price is along the y-axis.Graph the marginal revenue curve and the marginal cost curve.

• Correctly label the x axis as quantity and y axis as price.
• Based on the data from your table, graph the marginal revenue curve.Label the curve MR.
• Based on the data from your table, graph the marginal cost curve.Label the curve MC.

Step Five:Answer the following reflection questions.You will submit your responses with your data table and graph to your instructor.

1. What product market did you choose for this data to represent?Explain why.
2. At which price and quantity does marginal cost nearly equal marginal revenue without exceeding it?Highlight this point on your graph.
3. If you were in business for this product, at which price and quantity level would you sell?Explain why.