what problem might there be? new customers column isnt adding up to the chart given (add up columns to figure out then calculate the difference in each column and that will show how many additional customers at that time and check with her number) it should be wrong, her analysis is flawed
for marginal revenue she used additional revenue per customer x by # of customers (ex $7 x 10 = $70)
actually calculate it by adding up all purchase revenue and get the mean and add up all purchase costs and get mean then subtract the two. then put this info into the chart where you multiply it by the new customers (attachment 3) MC^2 #’s should be pretty constant because its including electricity and things like that, added profit per day x by 360 in order to get the profit per year
I was assigned question #3
Q. 3.Is Aimee using marginal cost and marginal revenue correctly in her analysis? Explain the errors in her analysis, if any. [Hint: Think about Bruce Morgan’s questions.]
I needed you to do was the correct calculations since what was was done originally on the case text was wrong cause didn’t do it right
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