Suggested Donation per dvd request Anticipated Number of dvd requestsA



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assignment for Jociee


Suggested Donation per DVD request

Anticipated Number of DVD RequestsA

Total Revenue

Marginal Revenue

Total Cost at $5.56 per DVD

Profit

$19.00

0

$0.00

$0.00

$0.00

$0.00

$15.00

2

$30.00

$15.00

$11.12

$18.88

$9.50

5

$47.50

$5.83

$27.80

$19.70

$7.75

9

$69.75

$5.56

$50.04

$19.71

$3.00

15

$45.00

-$4.13

$83.40

-$38.40

$0.00

24

$0.00

-$5.00

$133.44

-$133.44

b.
Of course our total revenue will be good when we sell to 9 people for $ 7.75

c.
A total of 24 people will receive the DVD and the suggested donation will be $0 which will turn into a loss of $133.44 for the GSTCG
d.
In order to maximize our profits, we need to sell DVDs to the majority of the population at a reasonable price. The same situation was observed when we sold it for $ 7.75 to 9 people.

2.
a.


We can see that demand has not changed at all as the size of the competitive market has changed. But in a monopoly market, the opposite is true. We can observe an increase in demand in the monopoly market.

b


A company experiences the best results when production and sales continue until marginal revenue equals marginal cost. Beyond that point, the cost of producing an additional unit will exceed the revenue generated. When marginal revenue falls below marginal cost, firms typically adopt the cost-benefit principle and halt production, as no further benefits are gathered from additional production.

c.
Prices will be set depending on the service distance, and for short distances, of course, prices will be slightly lower, and for long distances, this figure will rise.

d.
For example, when servicing a distance of 51 units, the price and volume, which depend on the demand line, are determined by straight lines, and this is around $ 27.

3.
a. If it is above the average variable cost, the service life is inevitable, but if it is equal to this figure, it will be possible to provide service in the long run.

Figure 3.b



c.

if the fixed price is below the average total cost, in which case the service life of the ferry may be long. But if it exceeds this, it will lead to an increase in our costs
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