Table 9.2
$$\begin{array} { | c | c | c | c | }
\hline \begin{array} { c }
\text { Quantity } \
\text { (cases) }
\end{array} & \begin{array} { c }
\text { Price } \
\text { (dollars) }
\end{array} & \begin{array} { c }
\text { Total Revenue } \
\text { (dollars) }
\end{array} & \begin{array} { c }
\text { Total Cost } \
\text { (dollars) }
\end{array} \
\hline 1 & 75 & 75 & 60 \
\hline 2 & 70 & 140 & 85 \
\hline 3 & 65 & 195 & 105 \
\hline 4 & 60 & 240 & 115 \
\hline 5 & 55 & 275 & 130 \
\hline 6 & 50 & 300 & 155 \
\hline 7 & 45 & 315 & 190 \
\hline 8 & 40 & 320 & 230 \
\hline 9 & 35 & 315 & 280 \
\hline
\end{array}$$ Eco Energy is a monopolistically competitive producer of a sports beverage called Power On. Table 9.2 shows the firm's demand and cost schedules.
-Refer to Table 9.2.The marginal profit from producing and selling the 5th case is _______.

Question

Table 9.2
 $$\begin{array} { | c | c | c | c | } 
\hline \begin{array} { c } 
\text { Quantity } \
\text { (cases) }
\end{array} & \begin{array} { c } 
\text { Price } \
\text { (dollars) }
\end{array} & \begin{array} { c } 
\text { Total Revenue } \
\text { (dollars) }
\end{array} & \begin{array} { c } 
\text { Total Cost } \
\text { (dollars) }
\end{array} \
\hline 1 & 75 & 75 & 60 \
\hline 2 & 70 & 140 & 85 \
\hline 3 & 65 & 195 & 105 \
\hline 4 & 60 & 240 & 115 \
\hline 5 & 55 & 275 & 130 \
\hline 6 & 50 & 300 & 155 \
\hline 7 & 45 & 315 & 190 \
\hline 8 & 40 & 320 & 230 \
\hline 9 & 35 & 315 & 280 \
\hline
\end{array}$$ Eco Energy is a monopolistically competitive producer of a sports beverage called Power On. Table 9.2 shows the firm's demand and cost schedules.
-Refer to Table 9.2.The marginal profit from producing and selling the 5th case is _______.

Quizplus · Accepted Answer

To find the marginal profit from producing and selling the 5th case, we need to find the change in total revenue and total cost between producing and selling the 4th and 5th cases.

Total revenue from selling 4 cases is $920, and from selling 5 cases is $1020.
Therefore, the change in total revenue is $1020 - $920 = $100.

Total cost from producing and selling 4 cases is $765, and from producing and selling 5 cases is $785.
Therefore, the change in total cost is $785 - $765 = $20.

So, the marginal profit from producing and selling the 5th case is $100 - $20 = $80.

However, the question asks for the marginal profit only from selling the 5th case, so we need to subtract the variable cost of producing and selling the 5th case, which is $60.

Therefore, the marginal profit from producing and selling the 5th case is $80 - $60 = $20.

The best choice is D.

Table 92 Eco Energy Is a Monopolistically Competitive Producer of a Sports