Given the following total revenue function: TR = 9Q – Q2

a. Derive the total revenue, average revenue, and marginal revenue schedules from Q = 0 to Q = 6 by 1’s.

b. On the same set of axes, plot the total revenue, the average revenue, and the marginal revenue schedules of part (a).

c. With reference to your figure in part (b), explain the relationship among the total, average, and marginal revenue curves.

Given the following total cost schedule: Q 0 1 2 3 4 TC 1 12 14 15 20

a. Derive the average and marginal cost schedules. b. On the same set of axes, plot the total, average, and marginal cost schedules of part (a). c. With reference to your figure in part (b), explain the relationship among the total, average, and marginal cost curves in part (b).

With the total revenue curve of Problem 3 and the total cost curve of Problem 4, derive the total profit function and show how the firm determines the profit maximizing level of output.

Let’s block ads! (Why?)

Send us your paper details now

We’ll find the best professional writer for you!

This template supports the sidebar's widgets. Add one or use Full Width layout.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish.Accept Read More

Privacy & Cookies Policy

error: Content is protected !!