vate XStudent Portal | MainCENGAGE MINDTAPgage.com/static/nb/ui/evo/index.html?deploymentid=57962518850017814342930411958eISBN=9781337106603&id=1810088554&snapshotid=3502477&Problems: Chapters 21 and 22The cost the upstream mill incurs for producing enough paper (one "unit" of paper) to make one unit of boxes is $12.50.XAssume the two mills operate as separate profit centers, and the paper mill sets the price of paper. It follows that the marginal profitability of boxesrepresents the highest price that the box division would be willing to pay the paper division for boxes.. Furthermore, assume that fixed costs are $0for the paper mill.Price(MarginalProfitability tothe Box Mill)($)The following table summarizes the quantity, total revenue, and marginal costs from the perspective of the paper mill for selling paper to the box millat various prices.$40$36$32$28$24$20$16$12$8$4ECN-601 Class ResourcesIn the following table, fill in the marginal revenue, total cost, and total profit for the paper mill when selling paper to the box mill at each given price.MarginalCostQuantity(Units of Paperequivalent toOne Box)1234567"8910TotalRevenue Marginal revenue($)$40$72$96$112$120$120$112$96x MindTap - Cengage Learning X +$72$40($)^^^^^^^^^$$S$S$$$If the paper mill sets the price of paper to sell to the box mill, it will set a price offor the paper mill. Companywide profits will be $$marginal profitability of each unit of paper, or box, to the box mill.)Total Cost― Q Search($)$12.50$$Suppose the paper mill is forced to transfer paper to the box mill at marginal cost ($12.50).$$$In this case, the box mill will demand units of paper. This leads to companywide profits of $($)$12.50$12.50$12.50$12.50$12.50$12.50$12.50$12.50$12.50CoProfit¡I($)$$and sellunits of paper to the box mill. Profits will be. (Hint: Recall that the prices in the table represent theSS$$$S$S

A tabular representation of various costs incurred by a firm at different levels of production is a…

The cost the upstream mill incurs for producing enough paper (one "unit" of paper) to make one unit of boxes is $12.50. Assume the two mills operate as separate profit centers, and the paper mill sets the price of paper. It follows that the marginal profitability of boxes represents the highest price that the box division would be willing to pay the paper division for boxes.. Furthermore, assume that fixed costs are $0 for the paper mill. The following table summarizes the quantity, total revenue, and marginal costs from the perspective of the paper mill for selling paper to the box mill at various prices. In the following table, fill in the marginal revenue, total cost, and total profit for the paper mill when selling paper to the box mill at each given price. Marginal Cost Price (Marginal Profitability to the Box Mill) ($) $40 $36 $32 $28 $24 $20 $16 $12 $8 $4 Quantity (Units of Paper equivalent to One Box) 1 2 3 4 5 6 7 8 9 10 Total Revenue Marginal revenue ($) In this case, the box mill will demand $40 $72 $96 $112 $120 $120 $112 $96 $72 $40 ($) $ $ $ $ If the paper mill sets the price of paper to sell to the box mill, it will set a price of for the paper mill. Companywide profits will be $ marginal profitability of each unit of paper, or box, to the box mill.) Total Cost ($) $12.50 $ $ $ $ Suppose the paper mill is forced to transfer paper to the box mill at marginal cost ($12.50). units of paper. This leads to companywide profits of S ($) $12.50 $12.50 $12.50 $12.50 $12.50 $12.50 $12.50 $12.50 $12.50 Profit ($) $ $ S S and sell units of paper to the box mill. Profits will be (Hint: Recall that the prices in the table represent the

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter6: Proudction Costs

Section: Chapter Questions

Problem 8SQP