Question 3 starts on page 1 and goes to page 2. Thank you Managerial Econ - Required Homework for Module 1Problem 1:A company's revenue function can be defined as; TR = Price (P) × Quantity Demanded (Q). Ifthe ordinary demand function for your firm is Q = 75 -0.4P where Q is monthly output:a. What is the total revenue function for this firm in terms of Q?b. What is the average revenue function for this firm in terms of Q?C. What is the MR function for this firm in terms of Q?d. Show that MR will be less than AR for any positive level of Q. Why is that?e. What is the quantity level that maximizes total revenue? What is the price?Problem 2:Your company's cost function (monthly) can be defined as; TC: cost per unit (AC) × quantitysupplied (Q). If the cost per unit (average cost) for your firm is AC = (800/Q) – 10 +2Q:a. What is the total cost function for your firm in terms of Q?b. How would you interpret the intercept term in this function?c. What is the marginal cost function for your firm?d.At what level of output (Q) is AC minimized?e.Is MC always less than AC?=f. Combine the total revenue function from problem 1 and total cost function from this problemand derive the profit-maximizing level of output and the price that would be charged.g. Why is the output level at this point smaller than the output level that maximizes totalrevenue?Problem 3:Squeak eClean produces commercial sanitizer used to clean tanker trucks that haul liquid foodproducts such as milk. This sanitizer a commodity like any other and at the wholesale level, thereare many domestic and foreign producers that compete vigorously. Suppose you have thefollowing estimated market demand and supply functions for the sanitizer.Qd = 248.08 +2.2Y-0.6Pc+ 1.2 Ps - 4P1 ==In these equations, Q measures output in gallons per month (in 1,000's), P is the price per gallonof the sanitizer, Y is annual average household income (in 1,000's), Pc is an index of commodityprices, and Ps is the average price per gallon of other types of sanitizer.10 + 2PAfter gathering the latest you find that average household income is $36,400, the currentlevel of the commodity price index is 110.6, and the average price per gallon of other types ofsanitizers is $48.50.a. Find the current equilibrium price and quantity in this market.b.Find the equilibrium price and quantity in this market if the government imposes a $9 pergallon tax on sanitizers.Problem 4:c. What will happen to the price buyers pay per gallon as a result of the tax?d. What price will sellers receive (net price) per gallon after the tax?e.How much revenue will this tax raise for the government?f. How much of the tax burden is borne by buyers? How much is borne by sellers?g. What is the deadweight loss for society from this tax?Suppose that an economist estimated the following regression equation for the supply ofgrapefruit.Qs = 58+15P₁-20PWhere PF is the per-ton price of fertilizer, Qs is in millions of pounds per month and the price ofgrapefruit is in dollars per pound.a. Determine how much the supply curve shifts if the price of fertilizer rises by $1.10 per unit.b. Explain why a change in the price of fertilizer causes a shift in supply for grapefruit ratherthan a movement along the supply curve.Problem 5:c. Holding the price of fertilizer constant, by how much would the price of grapefruit need torise to cause an increase of 60 million pounds per month in the quantity of grapefruitsupplied?Below you are given the graph of the demand and supply functions for Good X. Use thisinformation (and any graphs you might want to construct) to answer the questions that follow.

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