B problems 1 a the total average and marginal revenue

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marginal revenue of the program equals its marginal cost. b. Problems: 1. ( a ) The total, average, and marginal revenue schedules are Q TR= 9Q-Q 2 AR MR 0 0 -- -- 1 8 8 8 2 14 7 6 3 18 6 4 4 20 5 2 5 20 4 0 6 18 3 -2 7. The average and marginal cost schedules are Q TC AC MC 0 1 -- -- 1 12 12 11 2 14 7 2 3 15 5 1 4 20 5 5 9. Q TR TC Profit
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1 8 12 -4 2 14 14 0 3 18 15 3 4 20 20 0 The profit-maximizing level of output is Q = 3. Froeb and McCann’s chapter 4: a. Individual problems: 4-2 The marginal revenue of the running shoes is less than the marginal benefit [$55<$60]. For the tennis shoes, the marginal revenue is greater than the marginal benefit [$55>$45]. Thus, the shoe company should sell the tennis shoes to the Chinese retailer, but refuse to sell the running shoes at that price. 4-4 This is an extent decision, so we have to measure the marginal benefit of adding a copier and the marginal benefit of adding a worker. The marginal productivity of a copier is 50,000 pages per day (100,000 pages/2 copiers). The marginal productivity of a worker is 10,000 pages per day (50,000 pages/5 workers). An extra copier will add five times much as an extra worker, but will cost less than five times as much. Buy a copier.
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Christopher Reinemann
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