question archive Cook's Tall Ship Cruises is a single-price monopoly
Cook's Tall Ship Cruises is a single-price monopoly
Subject:EconomicsPrice:2.88 Bought3
Cook's Tall Ship Cruises is a single-price monopoly. The table shows the demand schedule for cruises and Cook's total cost schedule. Calculate Cook's total revenue and marginal revenue schedules and fill in the remaining columns in table.
| Price(thousands of dollars per cruise) | Quantity (cruises per month) | Total Cost (thousands of dollars per month) | Total Revenue (thousands of dollars per month | Marginal Revenue (thousands of dollars per cruise) |
|---|---|---|---|---|
| 180 | 0 | 25 | ||
| 170 | 1 | 180 | ||
| 160 | 2 | 345 | ||
| 150 | 3 | 520 | ||
| 140 | 4 | 705 | ||
| 130 | 5 | 900 |
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The total revenue is obtained by multiplying the Quantity by the Price. The marginal revenue on the other hand reflects the additional revenue for every extra ticket sold. This is equal to the the selling price in this case.
See below.
| Price(thousands of dollars per cruise) | Quantity (cruises per month) | Total Cost (thousands of dollars per month) | Total Revenue (thousands of dollars per month | Marginal Revenue (thousands of dollars per cruise) |
|---|---|---|---|---|
| 180 | 0 | 25 | 0 | 180 |
| 170 | 1 | 180 | 170 | 140 |
| 160 | 2 | 345 | 320 | 160 |
| 150 | 3 | 520 | 450 | 150 |
| 140 | 4 | 705 | 560 | 140 |
| 130 | 5 | 900 | 650 | 130 |
