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Seven years ago, you started a crosstown delivery service. The service is an environmentally friendly business and, given all the traffic congestion, you are also the fastest service in the city since your entire crew are bicyclists. You have two types of service. You have a small parcel service for anything that is flat and measures less than 11x17. You have a package service using a 100 lb. capacity bike trailer for anything weighing up to 10 lbs. As a way to introduce the new package service when you implemented the small package service, you charged the same price for packages as parcels. You are now wondering if you should charge different prices for the parcel and package service.
Complete the table below for the parcels market.
Price
Parcels
TR
MR
TC
MC
MR-MC
Profit
100
0
1,150
90
4,500
1,650
10
80
2,850
8,000
70
2,150
60
5,850
150
10,500
50
2,650
40
7,850
200
12,000
30
3,150
20
12,500
3,650
8,850
300
-10
4,150
-20
350
-30
4,650
-40
-50
5,150
-60
450
-70
5,650
-80
-1,150
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