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1. Marginal Cost, marginal revenue, marginal profit If fixed costs are 73.28, variable costs per unit are Q+ 2.89 and the demand function is P+4.76Q =191.34 a) Find TR, TC, and n. dn b) Find MR, MC, and Õp c) (i) Find where MR = MC. dn (ii) Find where 0. dQ (iii) What do you notice about (i) and (ii)?

1. Marginal Cost, marginal revenue, marginal profit If fixed costs are 73.28, variable costs per unit are Q+ 2.89 and the demand function is P+4.76Q =191.34 a) Find TR, TC, and n. dn b) Find MR, MC, and Õp c) (i) Find where MR = MC. dn (ii) Find where 0. dQ (iii) What do you notice about (i) and (ii)?

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter10: Prices, Output, And Strategy: Pure And Monopolistic Competition
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1. Marginal Cost, marginal revenue, marginal profit If fixed costs are 73.28, variable costs per unit are Q+2.89 and the demand function is P+4.76Q = 191.34 a) Find TR, TC, and n. dn b) Find MR, MC, and dQ dn c) (i) Find where MR = MC. (ii) Find where 0. dQ (iii) What do you notice about (i) and (ii)? d) Marginal function is sometimes taken to be the change in the function brought about by a one unit increase in the variable. Check that this gives an approximation to the derivative version of marginal function, although it is not quite the same as the exact value obtained. Use Excel to find: i. the value of TR for Q between 5 and 25, ii. the change in TR brought about by a 1 unit increase in Q for Q between 5 and 24 iii. the value of MR for Q between 5 and 24 iv. What do you notice about (ii) and (iii)? Why did I stop at 24 and not 25? e) Find MC(10) and explain what this means in words.
Transcribed Image Text:1. Marginal Cost, marginal revenue, marginal profit If fixed costs are 73.28, variable costs per unit are Q+2.89 and the demand function is P+4.76Q = 191.34 a) Find TR, TC, and n. dn b) Find MR, MC, and dQ dn c) (i) Find where MR = MC. (ii) Find where 0. dQ (iii) What do you notice about (i) and (ii)? d) Marginal function is sometimes taken to be the change in the function brought about by a one unit increase in the variable. Check that this gives an approximation to the derivative version of marginal function, although it is not quite the same as the exact value obtained. Use Excel to find: i. the value of TR for Q between 5 and 25, ii. the change in TR brought about by a 1 unit increase in Q for Q between 5 and 24 iii. the value of MR for Q between 5 and 24 iv. What do you notice about (ii) and (iii)? Why did I stop at 24 and not 25? e) Find MC(10) and explain what this means in words.
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