pg77 - s (MG608) ignm ent #2 ictor Sm ith 02/10/20 3 k...

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Unformatted text preview: s (MG608) ignm ent #2 ictor Sm ith 02/10/20 3 k Problem s (se Ap endix for Graphs) p7 #2) Solve the fol owing demand equations for TR(max). Provide TR equation with P(max) and Q(max) (max) = max. revenues Demand 1 Demand 2 Demand 3 Demand Equation Q = 450 - 16P Q = 360 - 80P Q = 150 - 50 P Q - 450 = -16P Q - 360 = -80P Q - 150 = -50 P Step1: Solve for P-1/16(Q) + 28.125 = P-1/80(Q) + 4.5 = P-1/50 (Q) + 3 = P Step2: Solve for TR TR = Q * P TR = Q * P TR = Q * P TR = Q * (-1/16(Q) + 28.125) TR = Q * (-1/80(Q) + 4.5) TR = Q * (-1/50 (Q) + 3) Step 3: Take 1st Deriv. Of TR dTR/dQ = 28.125 - 1/8(Q) dTR/dQ = 4.5 - 1/40(Q) dTR/dQ = 3 - 1/250(Q) Step4: Find Max Rev. Set dTR = 0, solve for Q(max) dTR/dQ = 0 = 28.125 -1/8(Q) dTR/dQ = 0 = 4.5 -1/40(Q) dTR/dQ = 0 = 3 -1/250(Q) 1/8(Q) = 28.125 1/40(Q) = 4.5 1/250(Q) = 3 Graph the Demand and TR Curves Demand Q P Q P Q P 450 360 150 2 5 14.06 180 2.25 750 1.5 28.13 4.5 3 TR Curve Q TR Q TR Q TR 1 3 2380.06 90 303.75 1 3 287.92 2 5 3164.06 180 405 2 5 472.5 3 7 2380.06 270 303.75 3 7 5 6.72 450 360 450 540 (se Ap endix for Graphs) p7 #2) Find AC, AVC and MC equations and curves for the fol oing TC equations...
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This note was uploaded on 04/25/2010 for the course ECON econ302 taught by Professor Rahman during the Spring '10 term at Fairmont State.

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pg77 - s (MG608) ignm ent #2 ictor Sm ith 02/10/20 3 k...

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