Question: S Homework (Ch 15) order to send the additional the truck, ham must lower the price from 400,000 to ou, ou per truck. Notice that
S Homework (Ch 15) order to send the additional the truck, ham must lower the price from 400,000 to ou, ou per truck. Notice that anim gama reverive from the art o the additional engine, but at the same time, he loses revenue from the initial eight engines because they are all sold at the lower price. Use the purple rectangle (diamond symbols) to shade the area representing the revenue lost from the initial eight engines by selling at $60,000 rathe than $80,000. Then use the green rectangle (triangle symbols) to shade the area representing the revenue gained from selling an additional engine a $60,000. PRICE (Thousands of dollars per fire engine) 110 100 90 80 70 60 0 50 40 30 10 0 1 2 3 4 5 6 QUANTITY (Fire engines) 7 8 Demand 9 10 Revenue Lost Revenue Gained
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
