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 = 6 by 1’s.

b. On the same set of axes, plot the total revenue, the average revenue, and the marginal revenue schedules of part (a).

c. With reference to your figure in part (b), explain the relationship among the total, average, and marginal revenue curves.

1. Given the following total cost schedule: Q 0 1 2 3 4 TC 1 12 14 15 20

a. Derive the average and marginal cost schedules. b. On the same set of axes, plot the total, average, and marginal cost schedules of part (a). c. With reference to your figure in part (b), explain the relationship among the total, average, and marginal cost curves in part (b).

1. With the total revenue curve of Problem 3 and the total cost curve of Problem 4, derive the total profit function and show how the firm determines the profit maximizing level of output.

Answer rating: 100% (QA)

units Toral A verage revenue Marginal revemue revenue 8 2 14 3 18 20 2 20 4 1 8 ... View the full answer