Question

What is the marginal utility when total utility increases from 34 to 42 after consumption of 1 unit?

A) 2

B) 4

C) 6

D) 8

Calculate total utility based on the following information;

Unit 1 Marginal Utility = 9

Unit 1 Marginal Utility = 8

Unit 1 Marginal Utility = 4

Unit 1 Marginal Utility = 1

A) 22

B) 23

C) 24

D) 25

Calculate accounting profit using the following data:

Explicit costs = $40,000

Implicit costs = $20,000

Revenue = $100,000

A) 40,000

B) 60,000

C) 80,000

D) 100,000

Calculate economic profit using the following data:

Explicit costs = $40,000

Implicit costs = $20,000

Revenue = $100,000

A) 40,000

B) 60,000

C) 80,000

D) 100,000

What is average profit if total profit is $50,000 and there are 25,000 units produced?

A) 4

B) 3

C) 2

D) 1

What is marginal revenue if total revenue increases from $15,500 to $16,000 after a unit is sold?

A) 500

B) 1000

C) 1500

D) 2000

Please answer them all!

Thank you!!

Answer 1

Ques 1 - What is the marginal utility when total utility increases from 34 to 42 after consumption of 1 unit is?

Answer 1- Marginal utility =42-34 = 8

Ques 2-Calculate total utility based on the following information;

Unit 1 Marginal Utility = 9

Unit 1 Marginal Utility = 8

Unit 1 Marginal Utility = 4

Unit 1 Marginal Utility = 1

Answer 2- Total utility = 9+8+4+1=23

Ques 3-Calculate economic profit using the following data:

Explicit costs = $40,000

Implicit costs = $20,000

Revenue = $100,000

Answer 3- Economic profit = Total revenue - (Explicit cost +Implicit cost) Economic profit = $100,000 - ($40000+$20000) = $40000

Ques 4 - What is average profit if total profit is $50,000 and there are 25,000 units produced?

Answer 4- Average profit = Total profit/total units = 50000/25000 = 2

Ques 5- What is marginal revenue if total revenue increases from $15,500 to $16,000 after a unit is sold?

Answer 5 - Marginal revenue = 16000-15500 = $500