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Graph Progression

The document provides price and cost information for a used bookstore to calculate average total costs, profit, and loss. It includes a table with data on quantity sold, price, total revenue, total costs, average total costs, and marginal costs. The summary also includes a calculation of the bookstore's profit when price is $5.25 and quantity sold is 5, which is $6.25. A drawing is requested to show the bookstore's demand curve, marginal revenue, average total costs, and marginal costs, and indicate the area of profit or loss.

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108 views

Graph Progression

The document provides price and cost information for a used bookstore to calculate average total costs, profit, and loss. It includes a table with data on quantity sold, price, total revenue, total costs, average total costs, and marginal costs. The summary also includes a calculation of the bookstore's profit when price is $5.25 and quantity sold is 5, which is $6.25. A drawing is requested to show the bookstore's demand curve, marginal revenue, average total costs, and marginal costs, and indicate the area of profit or loss.

Uploaded by

api-528192222
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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The table below gives price and cost information for a used-book.

It competes with a
number of similar stores, but it capitalizes on its location and the word-of-mouth
reputation of the coffee it serves to its customers.
Calculate average total costs and Profit/loss for the bookstore. (Round your answers to
the nearest penny.) Create a draw for the bookstore detailing it’s demand curve, MR, MC
and ATC. Shade the rectangle area of loss or profit. You may use your preferred drawing
tool such as Paint, Word, PowerPoint or you can use pencil and paper.  Capture your
work it a presentation tool such as a short video or PowerPoint.  Due 4/16
MR 
Book   Total Average Total MC
Q Price  ($) ($) Costs ($) Costs ($) ($)

0 6.50 − 2.00 − −

1 6.25 6.25 4.75  4.75 2.75

2 6.00 5.75 7.75  3.88 3.00

3 5.75 5.25 11.00  3.67 3.25

4 5.50 4.75 14.75  3.69 3.75

5 5.25 4.25 19.00  3.8 4.25

6 5.00 3.75 23.75  3.96 4.75

7 4.75 3.25 29.50  4.21 5.75

Average cost was calculated with formula = total costs/quantity


Profit is calculated = total revenue- total costs
Store profit= (Price- average total cost)*quantity
Price=s$5.25 and output quantity (5) = EQ
(5.25-4)*5 = $6.25

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