2. Using the information below, graph the production possibilities curve for Cal Poly jam and Cal Poly BBQ sauce on the graph below. Then, determine the maximum revenue producing combination using the methods discussed in class. Please show this point on the graph, draw an isoravenue line through it (label it point A), and calculate the total revenue produced from this combination. onen–BBQ Sauce (YT) Cases of Cal Poly Jam (Y2) 135 128 119 108 95 80 63 44 23 0 Price of Cal Poly Jam (Py2) = $90.00/case Price of BBQ Sauce (Py=$135.00/case a. Total Revenue at Revenue-Max Combination 140 120 100 80 60 40 20 0 0 10 20 30 40 50 6.0 70 80 90 20 40 60 80 100 MRPS NIPR b. What would happen to the output combination if the price of a case of BBQ Sauce increased to $171.00? Draw a new isorovenuo, line through this point and label it B. c. Calculate the new total revenue for the food processing plant at the new combination.

2. Using the information below, graph the production possibilities curve for Cal Poly jam and Cal Poly BBQ sauce on the graph below. Then, determine the maximum revenue producing combination using the methods discussed in class. Please show this point on the graph, draw an isoravenue line through it (label it point A), and calculate the total revenue produced from this combination. onen–BBQ Sauce (YT) Cases of Cal Poly Jam (Y2) 135 128 119 108 95 80 63 44 23 0 Price of Cal Poly Jam (Py2) = $90.00/case Price of BBQ Sauce (Py=$135.00/case a. Total Revenue at Revenue-Max Combination 140 120 100 80 60 40 20 0 0 10 20 30 40 50 6.0 70 80 90 20 40 60 80 100 MRPS NIPR b. What would happen to the output combination if the price of a case of BBQ Sauce increased to $171.00? Draw a new isorovenuo, line through this point and label it B. c. Calculate the new total revenue for the food processing plant at the new combination.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter10: Monopolistic Competition And Oligopoly

Section: Chapter Questions

Problem 16CTQ: Would you rather have efficiency or variety? That is, one opportunity cost of the variety of...

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