The table below shows the marginal cost (MC) for The Tea Shop, a perfectly competitive firm producing different quantities of tea. The market price of tea is $14.00 a box.

Instructions: In part a, round your answers to two decimal places. In part b, enter your answer as a whole number.

a. Complete the marginal revenue (MR) column in the table below.

The Tea Shop's Costs and Revenues

Quantity
(tea) Marginal Cost
(dollars) Marginal Revenue
(dollars)
50 $6.00 $
75 5.00
100 4.00
125 5.50
150 8.50
175 14.00
200 21.00
225 30.00
b. At a market price of $14.00 per box of tea, how many boxes of tea should The Tea Shop supply?

boxes

c. Suppose there is a decrease in demand. The likely effect on the market will be (increase or decrease)a decreasean increase in the market price and (Increase or decrease t)a decreasean increase in the quantity produced by The Tea Shop.