03.05 getting the most for your money graph

Economics 3.5

For this assignment, you will produce a marginal cost analysis graph and create a scenario that explains where the firm should set price and quantity levels.
Step One: Launch the data file to get started. Print or copy the data table before continuing to step two.
Step Two: Determine a product market (a specific good or service) appropriate to the prices listed. Make this the title of your graph and data table.
Step Three: Calculate the marginal revenue, marginal cost, and profit for each quantity level. Fill in the data table. If you need help with this step, review this case study.
Step Four: Create a graph of the data. Quantity is along the x-axis and price is along the y-axis. Graph the marginal revenue curve and the marginal cost curve.
Correctly label the x axis as quantity and y axis as price.
Based on the data from your table, graph the marginal revenue curve. Label the curve MR.
Based on the data from your table, graph the marginal cost curve. Label the curve MC.
Step Five: Answer the following reflection questions. You will submit your responses with your data table and graph to your instructor.
What product market did you choose for this data to represent? Explain why.
At which price and quantity does marginal cost nearly equal marginal revenue without exceeding it? Highlight this point on your graph.
If you were in business for this product, at which price and quantity level would you sell? Explain why.

Quantity

Price (in whole dollars)

Total Revenue

Marginal Revenue

Total Cost

Marginal Cost

Profit (or loss)

0

42

0

35

1

41

41

68

2

40

80

94

3

39

117

107

4

38

152

114

5

37

185

129

6

36

216

180

7

35

245

235

8

34

272

296