b What is your total revenue if you sell 75000 robots Includ

Math111e.016 Math 111 End d Erd of Week 2 New Before beginning this problem, read Section 6 of the Supplement: Introduction to Revenue, Cost, and Profit. one-day period. Note the units on the You produce and sell Robots. The graph below shows your total revenue and total cost for different production and sales levels during a l 750 700 650 600 550 500 400 350 250 200 150 100 50 0 10 20 30 40 5060 0 80 90 100 quantity (in thousands of Robots) Click here for a version of the graph that you can print out and wnite on.

Solution

b. If we sell 75,000 robots, the total revenue will be $600 thousands[the value of point \"B\" at 75,000 units robots].

c. Fixed cost is the point where total revenue and total cost have same value, so it will be equal to $475 thousands.

d. Total cost if we produce 25,000 robots =$375 thousands[the value of point \"A\" at 25,000 units of robots].

e. Revenue on 80,000 units of robots=$650 thousands[the value of point \"B\"]

Cost of 80,000 units of robots=$550 thousands[the value of point \"A\"]

profit =revenue - cost= $650 thousands-$550 thousands

profit = $100 thousands....

f. By defination, Marginal revenue is the amount a company gains in producing one unit of a good here revenue of 30 units of robots=$250 thousands

revenue of 40 units of robots=$325 thousands

so revenue in producing one unit of robot=($325-$250)/10

=$7.5 thousands

marginal cost by defination is the amount a company incursin producing one additional units of goods.

cost of 20 units of robots=$350 thousands approx.

cost of 30 units of robots=$400 thousands approx.

marginal cost=($400-$350)/10=$5 thousands

g.break even is the point at which total revenue equals the total cost,so it occurs at 60,000 units of robots