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Use the purple rectangle (diamond symbols) to shade the area representing the revenue lost from the initial four engines by selling at $90,000 rather than $105,000. Then use the green rectangle (triangle symbols) to shade the area representing the revenue gained from selling an additional engine at $90,000, PRICE (Thousands of dollars per fire engine) 185 150 135 120 105 90 75 60 45 30 15 0 D 3 Revenue Lost Demand Revenue Gained 5 6 QUANTITY (Fire engines) 8 9 10 Karim increase production from 4 to 5 fire engines because the dominates in this scenario. True or False: If alternatively Karim's HookNLadder were a competitive firm and $105,000 were the market price for an engine, decreasing its price from $105,000 to $90,000 would result in a decrease in the production quantity, but an increase in total revenue. True O False

Use the purple rectangle (diamond symbols) to shade the area representing the revenue lost from the initial four engines by selling at $90,000 rather than $105,000. Then use the green rectangle (triangle symbols) to shade the area representing the revenue gained from selling an additional engine at $90,000, PRICE (Thousands of dollars per fire engine) 185 150 135 120 105 90 75 60 45 30 15 0 D 3 Revenue Lost Demand Revenue Gained 5 6 QUANTITY (Fire engines) 8 9 10 Karim increase production from 4 to 5 fire engines because the dominates in this scenario. True or False: If alternatively Karim's HookNLadder were a competitive firm and $105,000 were the market price for an engine, decreasing its price from $105,000 to $90,000 would result in a decrease in the production quantity, but an increase in total revenue. True O False

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Use the purple rectangle (diamond symbols) to shade the area representing the revenue lost from the initial four engines by selling at $90,000 rather than $105,000. Then use the green rectangle (triangle symbols) to shade the area representing the revenue gained from selling an additional engine at $90,000, PRICE (Thousands of dollars per fire engine) 185 150 135 120 105 90 75 60 45 30 15 0 D 3 Revenue Lost Demand Revenue Gained 5 6 QUANTITY (Fire engines) 8 9 10 Karim increase production from 4 to 5 fire engines because the dominates in this scenario. True or False: If alternatively Karim's HookNLadder were a competitive firm and $105,000 were the market price for an engine, decreasing its price from $105,000 to $90,000 would result in a decrease in the production quantity, but an increase in total revenue. True O False
Transcribed Image Text:Use the purple rectangle (diamond symbols) to shade the area representing the revenue lost from the initial four engines by selling at $90,000 rather than $105,000. Then use the green rectangle (triangle symbols) to shade the area representing the revenue gained from selling an additional engine at $90,000, PRICE (Thousands of dollars per fire engine) 185 150 135 120 105 90 75 60 45 30 15 0 D 3 Revenue Lost Demand Revenue Gained 5 6 QUANTITY (Fire engines) 8 9 10 Karim increase production from 4 to 5 fire engines because the dominates in this scenario. True or False: If alternatively Karim's HookNLadder were a competitive firm and $105,000 were the market price for an engine, decreasing its price from $105,000 to $90,000 would result in a decrease in the production quantity, but an increase in total revenue. True O False
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