ch 2 - Managerial Economics 6005 Homework # 1 Chapter: 2...

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Managerial Economics – 6005 Homework # 1 Chapter: 2 P2.1 Graphic Analysis. A. Given the output (Q) and price (P) data in the following table, calculate the related total revenue (TR), marginal revenue (MR), and average revenue (AR) figures: Q P TR MR AR 0 $10 0 -- -- 1 9 9 9 9 2 8 16 7 8 3 7 21 5 7 4 6 24 3 6 5 5 25 1 5 6 4 24 -1 4 7 3 21 -3 3 8 2 16 -5 2 9 1 9 -7 1 10 0 0 -9 0 B. Graph these data using ‘’dollar’’ on the vertical axis and ‘’quantity’’ on the horizontal axis. At what output level is revenue maximized? TR 0 9 16 21 24 25 24 21 16 9 0 0 5 10 15 20 25 30 1 2 3 4 5 6 7 8 9 10 11
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Managerial Economics – 6005 Homework # 1 According to the graph, at the output 5, the revenue is maximized. C. Why is marginal revenue less than average revenue at each price level? ………. .need to be answered!! P2.2 Profit versus Revenue Maximization. A. Fill in the missing data for price (P), total revenue (TR), marginal revenue (MR), total cost (TC), marginal cost (MC), profit (π), and marginal profit (Mπ) in the following table:
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This note was uploaded on 11/13/2011 for the course MIS 4100 taught by Professor Maxnorth during the Spring '11 term at Birmingham-Southern College.

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ch 2 - Managerial Economics 6005 Homework # 1 Chapter: 2...

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