1) Given the following total-revenue function TR = 9Q-Q2 a) Derive the total-revenue, average-revenue and marginal-revenue...

 

Transcribed Image Text:

1) Given the following total-revenue function TR = 9Q-Q2 a) Derive the total-revenue, average-revenue and marginal-revenue schedules from Q = 0 to Q = 4 by 1s. Average revenue (AR) = total revenue (TR) / Q Marginal revenue (MR) = change in total revenue / change in Q For example Q TR AR MR 2 14 7 3 18 6 b) On the same set of axes, plot the total-revenue, averate-revenue and marginal-revenue curves. 7) Given the following total-cost schedule Q 0 1 2 3 4 TC 1 12 14 15 20 Derive the average- and marginal-cost schedules 9) With the total-revenue schedule of Problem 1 and the total-cost schedule of Problem 7, show the profit maximizing level of output. 11) Identify the characteristics of the American business model. 1) Given the following total-revenue function TR = 9Q-Q2 a) Derive the total-revenue, average-revenue and marginal-revenue schedules from Q = 0 to Q = 4 by 1s. Average revenue (AR) = total revenue (TR) / Q Marginal revenue (MR) = change in total revenue / change in Q For example Q TR AR MR 2 14 7 3 18 6 b) On the same set of axes, plot the total-revenue, averate-revenue and marginal-revenue curves. 7) Given the following total-cost schedule Q 0 1 2 3 4 TC 1 12 14 15 20 Derive the average- and marginal-cost schedules 9) With the total-revenue schedule of Problem 1 and the total-cost schedule of Problem 7, show the profit maximizing level of output. 11) Identify the characteristics of the American business model.