Question: The table below shows the total cost (TC) and marginal cost (MC) for Baker Street, a perfectly competitive firm producing different quantities of apple pies.The
The table below shows the total cost (TC) and marginal cost (MC) for Baker Street, a perfectly competitive firm producing different quantities of apple pies.The market price of apple pies is $11.00 per pie.
a. Fill in the marginal revenue (MR) and average revenue (AR) columns.
Instructions: Round your answers to two decimal places.
Baker Street's Costs and Revenues
Quantity (apple pies) | TC (dollars) | MC (dollars) | MR (dollars) | AR (dollars) |
| 15 | $170.00 | $10.00 | $ | $ |
| 20 | 217.50 | 9.50 | ||
| 25 | 267.50 | 10.00 | ||
| 30 | 322.50 | 11.00 | ||
| 35 | 387.50 | 13.00 | ||
| 40 | 462.50 | 15.00 |
Instructions: Enter your answers as a whole number.
b. At the market price of $11.00 per apple pie, how many apple pies should Baker Street make?
apple pies
c. If the market price for apple pies were to rise to $13.00 per apple pie, how many apple pies should Baker Street make?
apple pies
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
