Trusted by Students Everywhere
Why Choose Us?
0% AI Guarantee
Human-written only.
24/7 Support
Anytime, anywhere.
Plagiarism Free
100% Original.
Expert Tutors
Masters & PhDs.
100% Confidential
Your privacy matters.
On-Time Delivery
Never miss a deadline.
The table shows Jensen's output (sandwich) and costs, a perfectly competitive firm
The table shows Jensen's output (sandwich) and costs, a perfectly competitive firm. Jensen's fixed cost is $9 per hour. The current market price is $6. What is Jensen's marginal revenue from the 2nd sandwich sold?
a. $6
b. $12
c. $20
d. $24
e. $30
| Quantity | Total fixed costs TFC (dollars) | Total variable costs TVC (dollars) |
| 0 | 500 | 0 |
| 1 | 500 | 100 |
| 2 | 500 | 180 |
| 3 | 500 | 220 |
| 4 | 500 | 300 |
| 5 | 500 | 390 |
| 6 | 500 | 500 |
| 7 | 500 | 640 |
| 8 | 500 | 800 |
| 9 | 500 | 1000 |
| 10 | 500 | 1250 |
Expert Solution
The correct answer is a. $6.
- The marginal revenue reflects the extra revenue obtained by selling that second unit. Because this is a perfectly competitive market, the selling price of all sandwiches will be $6. Therefore, the marginal revenue is $6.
Archived Solution
Unlocked Solution
You have full access to this solution. To save a copy with all formatting and attachments, use the button below.
Already a member? Sign In
Important Note:
This solution is from our archive and has been purchased by others. Submitting it as-is may trigger plagiarism detection. Use it for reference only.
For ready-to-submit work, please order a fresh solution below.
For ready-to-submit work, please order a fresh solution below.
Or get 100% fresh solution
Get Custom Quote
