Table 6-2 represents the price, quantity, revenue, and marginal revenue schedule for a small industrial food...

 

Transcribed Image Text:

Table 6-2 represents the price, quantity, revenue, and marginal revenue schedule for a small industrial food manufacturer, Makh'shev Foods, and its matzo soup dumplings. Price (S) 7 6 5 4 Use Table 6-2 3 Quantity 1 2 3 4 5 Revenue ($) 7.00 12.00 15.00 16.00 15.00 MR (S) 7.00 5.00 3.00 1.00 -1.00 Suppose Makh'shev has a constant marginal cost of $2.00 for each dumpling, then what would be the profit-maximizing number of dumplings to produce? What would be Makh'shev's profit? Table 6-2 represents the price, quantity, revenue, and marginal revenue schedule for a small industrial food manufacturer, Makh'shev Foods, and its matzo soup dumplings. Price (S) 7 6 5 4 Use Table 6-2 3 Quantity 1 2 3 4 5 Revenue ($) 7.00 12.00 15.00 16.00 15.00 MR (S) 7.00 5.00 3.00 1.00 -1.00 Suppose Makh'shev has a constant marginal cost of $2.00 for each dumpling, then what would be the profit-maximizing number of dumplings to produce? What would be Makh'shev's profit?

Answer rating: 100% (QA)

Using the marginal revenue schedule in Table 62 we can see that marginal revenue is negative which m... View the full answer