you may use EXCEL, but if you do so, insert figures and tables from EXCEL onto this sheet. 1. Consider the total profit function ( = TR - TC = (22 –Q)Q – (10+2Q+Q2 ) a. Create a table that shows Total Revenue, Total Cost and Total Profit, (in your table, let quantity run from 0 to 13 in increments of 1.) Indicate in your table where both total profits and total revenues are maximized |Q |TR |TC |T( |
Words: 543 - Pages: 3
following table: Labor Input I (No. of Workers) Total Product Marginal Product Average Product 1 3 0 + 3 = +3 3/1 = 3 2 6 6 – 3 = +3 6/2 = 3 3 16 16 – 6 = +10 16/3 = 5.33 4 29 29 – 16 = +13 29/4 = 7.25 5 43 43 – 29 = +14 43/5 = 8.6 6 55 55 – 43 = +12 55/6 = 9.17 7 58 58 – 55 = +3 58/7 = 8.29 8 60 60 – 58 = +2 60/8 = 7.5 9 59 59 – 60 = -1 59/9 = 6.56 10 56 56 – 59 = -3 56/10 = 5.6 b. Plot the (i) total product, (ii) marginal product, and (iii) average product functions. c. Determine
Words: 1355 - Pages: 6
institution aim for in correcting market inefficiencies? (chapter 20) a) Correcting deviations from perfect competition in b) redistribution of incomes c) stimulating the appliance of the following productionrule MO = MK (marginal revenue = marginal cost) d) both answer a. and b. are correct 3. In the long-term companies in monopolistic competition make (chapter 7) a) Small positive economic profit b) large positive economic profit c) no economic profit d) none
Words: 2139 - Pages: 9
NOTES FOR MICROECONOMICS by Prof. Nicholas Economides Stern School of Business Fall 2011 Copyright Nicholas Economides MICROECONOMICS is about 1. Buying decisions of the individual 2. Buying and selling decisions of the firm 3. The determination of prices and in markets 4. The quantity, quality and variety of products 5. Profits 6. Consumers’ satisfaction There are two sides in a market for a good DEMAND SUPPLY Created by Consumers Created by firms Each consumer
Words: 12710 - Pages: 51
Making sure to consider the marginal benefits and cost tied to purchasing a new home will assist a person that is purchasing his, or her new home during a positive time in the market as well as the economy. Marginal benefits are the benefit changes over the quantity change and marginal costs, which are the cost change over quantity change. For example, buying a new house during a recession would not be too beneficial because the benefits are out-weighed by the marginal cost. During a
Words: 478 - Pages: 2
and cost functions (in dollars) for commodity produced and sold are: ( ) = 400 − and units of a ( ) = 5000 + 70 respectively. i) Find the profit function. Solution: [2 marks] Revenue function R(x) = 400 − 20 Cost function C(x) = 5000 + 70 Profit Function is defined as ( )= ( )− ( ) = 400 − ( ) = 330 − ii) − 5000 Find the marginal profit function. [2 marks] Solution: Marginal profit is the difference between the marginal revenue & marginal cost
Words: 846 - Pages: 4
for online books is increasing and the demand for online books is increasing. The costs for books on line or way cheaper than in a bookstore so right there will tell you it is a good time to go on line for any business. The online cookbook industry would be a great business to start because everyone these days are buying online for their clothing and paying their bills and even shopping for school books. The costs in a on line business are very low you only need a few employees to answer
Words: 1238 - Pages: 5
the cost is covered by their company. The other segment of customers are more price elastic and unwilling to pay higher prices. However, their ticket comes with restrictions attached to it. A firm is setting the price of its products given the market conditions and its desire to maximize profit. Since it sells the same product to different segments its marginal cost is the same for both groups. Most of the cost for a flight are fixed cost and are well known in advance. As the variable cost (food
Words: 367 - Pages: 2
expense (ECC, DCC), profit (GMC, IPC, BPC, CPC, Investment centre) and the organization of these centres Ratios or specific elements used for measure Transfer pricing (market-based (ideal method), marginal cost (rare and not extremely useful), marginal cost and lump-sum fee,full-cost / full-cost and mark-up (most widely used), negotiated (can lead to power struggles), dual-rate OVERVIEW OF THE CASE As of 2003, Kranworth designed and manufactured a large range of foldable chairs
Words: 1459 - Pages: 6
Turn Around of Indian Railways Micro Economics Assignment Contents Railways 3 Indian Railways 3 Causes for decline in performance 3 Diagnostics, Recommendations and Initiatives taken by Indian Railways 4 Outcome 5 Domain Analysis 7 Passengers Domain 7 Freight Domain 7 Other Domains 10 Parcel and Catering Services 10 Monopoly of Indian Railways – A welfare maximization firm 13 Revenue Maximization 14 Freight 14 Passenger 14 Others 14 Price Discrimination 15 First Level Price
Words: 3246 - Pages: 13
