Question

On the following graph, use the green point (triangle symbol) to plot the weekly total revenue when the market price is $40, $60, $80, $100, $120, $140, and $160 per scooter.

Answer 1

To calculate and plot weekly total revenue on a graph, we multiply the fixed quantity of 40 scooters by each of the given market prices, resulting in revenue figures that can be plotted accordingly.

Step-by-step explanation:

The student is asked to plot the weekly total revenue for a firm when it sells scooters at varying market prices. The revenue can be calculated by multiplying the quantity of scooters sold by the market price. Since the firm sells scooters at a quantity of 40, we can clearly calculate the total revenue at different price points. Here's how the revenue is calculated for the given prices:

• At $40 per scooter: 40 scooters × $40 = $1600
• At $60 per scooter: 40 scooters × $60 = $2400
• At $80 per scooter: 40 scooters × $80 = $3200
• At $100 per scooter: 40 scooters × $100 = $4000
• At $120 per scooter: 40 scooters × $120 = $4800
• At $140 per scooter: 40 scooters × $140 = $5600
• At $160 per scooter: 40 scooters × $160 = $6400

These total revenue figures can then be plotted on the graph using a green point with a triangle symbol at the respective price levels on the vertical axis for a quantity of 40 scooters on the horizontal axis. Remember, the question provides additional contexts such as the firm making economic profits and provides details about total costs and profit calculations, which helps in understanding the reason behind plotting such revenues.