Find total revenue and marginal revenue in both situation

Reference no: EM13936043

Due to operating cost already high, the firm Carlo & You Energy Drink Inc. (an oligopoly) seeks your advice on whether to advertise or not and provides you with the following information:

Advertising Non- Advertising
P Q TR MR P Q TR MR
22 3                  22 0
21 4                  21 1
20 5    20 1
18 5                 18 2
15 8 15 3
14 9 14 4
13 10 13 5

a. Find the total revenue and marginal revenue in both situations.

b. With a $16 unit cost, what is the firm's profit maximizing production?

c. The radio advertisement costs $600 a month (30 days), find the firm's profit per case of energy drink (hint: consider daily advertisement cost)

d. Should the firm advertise or not? Explain your rationale.

Reference no: EM13936043

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