Suppose that Zoomba is one of over a dozen competitive firms in the Oviedo area that offers moving truck rentals. Based on the preceding graph showing the weekly market demand and supply curves, the price Zoomba must take as given is $ Fill in the price and the total, marginal, and average revenue Zoomba earns when it rents 0, 1, 2, or 3 trucks during move-in week. Quantity Price Total Revenue Marginal Revenue (Trucks) (Dollars per truck) (Dollars) (Dollars) Average Revenue (Dollars per truck) 0 AAA

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Author:Steven A. Greenlaw; David Shapiro
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Chapter8: Perfect Competition
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Problem 1SCQ: Firms ill a perfectly competitive market are said to be price takers that is, once the market...
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Suppose that Zoomba is one of over a dozen competitive firms in the Oviedo area that offers moving truck rentals.
Based on the preceding graph showing the weekly market demand and supply curves, the price Zoomba must take as given is 5
Fill in the price and the total, marginal, and average revenue Zoomba earns when it rents 0, 1, 2, or 3 trucks during move-in week.
Quantity Price
Total Revenue Marginal Revenue
(Dollars)
(Dollars)
(Trucks)
Average Revenue
(Dollars per truck)
0
1
2
3
(Dollars per truck)
The demand curve faced by Zoomba is identical to which of its other curves? Check all that apply.
Supply curve
Average revenue curve
Marginal cost curve
Marginal revenue curve
Transcribed Image Text:Suppose that Zoomba is one of over a dozen competitive firms in the Oviedo area that offers moving truck rentals. Based on the preceding graph showing the weekly market demand and supply curves, the price Zoomba must take as given is 5 Fill in the price and the total, marginal, and average revenue Zoomba earns when it rents 0, 1, 2, or 3 trucks during move-in week. Quantity Price Total Revenue Marginal Revenue (Dollars) (Dollars) (Trucks) Average Revenue (Dollars per truck) 0 1 2 3 (Dollars per truck) The demand curve faced by Zoomba is identical to which of its other curves? Check all that apply. Supply curve Average revenue curve Marginal cost curve Marginal revenue curve
2. The demand curve facing a competitive firm
The following graph illustrates the market for small moving trucks in Oviedo, FL, during UCF's fall move-in week.
100
90
80
PRICE (Dollars per small truck);
5 8 8
70
50
40
30
20
10
0
Demand
0 1
5,50
8
2 3 4 5 6
QUANTITY (Hundreds of small trucks)
Supply
9 10
?
Suppose that Zoomba is one of over a dozen competitive firms in the Oviedo area that offers moving truck rentals.
Transcribed Image Text:2. The demand curve facing a competitive firm The following graph illustrates the market for small moving trucks in Oviedo, FL, during UCF's fall move-in week. 100 90 80 PRICE (Dollars per small truck); 5 8 8 70 50 40 30 20 10 0 Demand 0 1 5,50 8 2 3 4 5 6 QUANTITY (Hundreds of small trucks) Supply 9 10 ? Suppose that Zoomba is one of over a dozen competitive firms in the Oviedo area that offers moving truck rentals.
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