Demand data in millions in the past years

Price Demand

1,990.1 123

1,732.0 182

1,634.3 350

1,252.0 380

732.1 400

622.3 456

• In recent years, FGI had decreased its advertisement revenue, selecting to have a commercial during the Super Bowl and a few other sporting events.

FGI has cut down on manufacturing because of lack of demand. Below is the combined production cost for construction and forestry equipment. What level of demand generates the greatest net income?

OUTPUT	PRICE	MARGINAL REVENUE	TOTAL REVENUE	TOTAL COST	FIXED COST	VARIABLE COST	MARGINAL COST	AVERAGE FIXED COST	AVERAGE VARIABLE COST	AVERAGE TOTAL COST
0					$990.0
1	$2,600.0	$2,600.0	$2,600.0	$1,050.0	$990.0	$60.0	$60.0	$990.0	$60.0	$1,050.0
2	$2,500.0	$2,400.0	$5,000.0	$1,100.0	$990.0	$110.0	$50.0	$495.0	$55.0	$550.0
3	$2,400.0	$2,200.0	$7,200.0	$1,145.0	$990.0	$155.0	$45.0	$330.0	$51.7	$381.7
4	$2,300.0	$2,000.0	$9,200.0	$1,200.0	$990.0	$210.0	$55.0	$247.5	$52.5	$300.0
5	$2,200.0	$1,800.0	$11,000.0	$1,262.0	$990.0	$272.0	$62.0	$198.0	$54.4	$252.4
6	$2,100.0	$1,600.0	$12,600.0	$1,335.0	$990.0	$345.0	$73.0	$165.0	$57.5	$222.5
7	$2,000.0	$1,400.0	$14,000.0	$1,423.0	$990.0	$433.0	$88.0	$141.4	$61.9	$203.3
8	$1,900.0	$1,200.0	$15,200.0	$1,517.0	$990.0	$527.0	$94.0	$123.8	$65.9	$189.6

Answer rating: 100% (QA)

To determine the level of demand that generates the greatest net income we ... View the full answer