1. Marginal Cost, marginal revenue, marginal profitIf fixed costs are 73.28, variable costs per unit are Q+2.89 and the demand function isP+4.76Q = 191.34a) Find TR, TC, and n.dnb) Find MR, MC, anddQdnc) (i) Find where MR = MC. (ii) Find where0.dQ(iii) What do you notice about (i) and (ii)?d) Marginal function is sometimes taken to be the change in the function brought about bya one unit increase in the variable. Check that this gives an approximation to thederivative version of marginal function, although it is not quite the same as the exactvalue obtained. Use Excel to find:i.the value of TR for Q between 5 and 25,ii.the change in TR brought about by a 1 unit increase in Q for Q between 5 and 24iii.the value of MR for Q between 5 and 24iv.What do you notice about (ii) and (iii)? Why did I stop at 24 and not 25?e) Find MC(10) and explain what this means in words.

A firm maximizes profit by producing output at a level where MR = MC. Total Revenue = Price *…

1. Marginal Cost, marginal revenue, marginal profit If fixed costs are 73.28, variable costs per unit are Q+ 2.89 and the demand function is P+4.76Q =191.34 a) Find TR, TC, and n. dn b) Find MR, MC, and Õp c) (i) Find where MR = MC. dn (ii) Find where 0. dQ (iii) What do you notice about (i) and (ii)?

1. Marginal Cost, marginal revenue, marginal profit If fixed costs are 73.28, variable costs per unit are Q+ 2.89 and the demand function is P+4.76Q =191.34 a) Find TR, TC, and n. dn b) Find MR, MC, and Õp c) (i) Find where MR = MC. dn (ii) Find where 0. dQ (iii) What do you notice about (i) and (ii)?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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