Question

THE DEMAND CURVE FACING A COMPETITIVE FIRM

The following graph illustrates the market for extra-large moving trucks in Waco, TX, during Baylor’s fall move-in week.

(Graph)

Suppose that SendIt is one of over a dozen competitive firms in the Waco area that offers moving truck rentals.

Based on the preceding graph showing the weekly market demand and supply curves, the price SendIt must take as a given is $_____.

(Fill in the table with the price and the total, marginal, and average revenue SendIt earns when it rents 0, 1, 2, or 3 trucks during move-in week.)

QUANTITY (Trucks) - 0 , 1 , 2 , 3
PRICE ($ per truck) - $___, $___, $___, $___
Total Revenue ($) - $0, $___, $___, $___
Marginal Revenue ($) - $___, $___, $___
Average Revenue ($ per truck) - $N/A, $___, $___, $___

The demand curve faced by SendIt is identical to which of its other curves? (Check all that apply.)

- Average Revenue Curve
- Marginal Cost Curve
- Marginal Revenue Curve
- Supply Curve

Answer 1

The price SendIt must take as a given is $2.75. When renting 0, 1, 2, or 3 trucks during move-in week, SendIt earns total revenue of $0, $2.75, $5.50, and $8.25 respectively. The demand curve faced by SendIt is identical to the average revenue and marginal revenue curves.

Step-by-step explanation:

The price SendIt must take as a given is $2.75.

When SendIt rents 0 trucks during move-in week, the price is $2.75 per truck. The total revenue is $0, the marginal revenue is $2.75, and the average revenue is $N/A.

When SendIt rents 1 truck during move-in week, the price is $2.75 per truck. The total revenue is $2.75, the marginal revenue is $2.75, and the average revenue is $2.75.

When SendIt rents 2 trucks during move-in week, the price is $2.75 per truck. The total revenue is $5.50, the marginal revenue is $2.75, and the average revenue is $2.75.

When SendIt rents 3 trucks during move-in week, the price is $2.75 per truck. The total revenue is $8.25, the marginal revenue is $2.75, and the average revenue is $2.75.

The demand curve faced by SendIt is identical to the average revenue curve and the marginal revenue curve.

Answer 2

the answer is below

Step-by-step explanation:

Are you sure this question belongs to mathematics,,

because iv never seen these types of question in math

please can you check again and rectify.