Question: The table below shows the marginal cost (MC) for The Tea Shop, a perfectly competitive firm producing different quantities of tea. The market price of
The table below shows the marginal cost (MC) for The Tea Shop, a perfectly competitive firm producing different quantities of tea. The market price of tea is $7.50 a box Instructions: In part around your answers to 2 decimal places. In part b, enter your answer as a whole number a. Complete the marginal revenue (MR) column in the table below. The Tea Shop's Costs and Revenues Quantity Marginal Cost Marginal Revenue (dollars) (dollars) $ (tea) 50 75 $8.00 7.00 6.00 100 125 150 175 7.50 10.50 16.00 23.00 32.00 200 225 b. Ato market price of $7.50 per box of tea, how many boxes of tea should The Tea Shop supply? boxes c. Suppose there is a decrease in demand. The likely effect on the market will be Click to select) in the market price and Click to select in the quantity produced by The Tea Shop
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