You own and operate a fruit stand. Your demand curve is given by P = 0.5 -

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You own and operate a fruit stand. Your demand curve is given by P = 0.5 - 0.002Q, where P is in dollars and Q is in pounds of fruit. Your marginal cost curve is MC = 0.006Q. Your fixed costs equal $10.

(a) Use a graph to show your demand and marginal cost curves. (5 marks)

(b) Use the demand curve to derive the marginal revenue curve and show it on your graph.
(5 marks)

(d) Calculate your profit.
(5 marks)

(e) Calculate consumer surplus at the profit maximizing P and Q.
(5 marks)

Related Book For answer-question

Microeconomics An Intuitive Approach with Calculus

ISBN: 978-0538453257

1st edition

Authors: Thomas Nechyba

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Posted Date: Feb 23, 2024 02:15 AM

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You own and operate a fruit stand. Your demand curve is given by P = 0.5 -

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Fruit Stand Economics Heres the breakdown of your fruit stands economic analysis a Demand and Marginal Cost Curves Demand Curve P 05 0002Q Price in do... View the full answer

Microeconomics An Intuitive Approach with Calculus

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