What is the profit-maximizing price and quantity? B. What is the revenue-maximizing price and quantity? C. When total cost exceeds total revenue, profits are?
What is the profit-maximizing price and quantity? B. What is the revenue-maximizing price and quantity? C. When total cost exceeds total revenue, profits are?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
A. What is the profit-maximizing
B. What is the revenue-maximizing price and quantity?
C. When total cost exceeds total revenue, profits are?
![Complete Table Below (1-9):
Sum all orthe
fixed costs from
Price x Quatity above. TFC
does not vary
from unit to
Unit variable Total
cost (average Variable Cost
+ Total Fixed
Cost TFC +
|TVC
Total
Revenue -
Total Cost
TR - TC
Change in
|(Total
Revenue)
|/(Change in
|Quantity)
|Change in
|(Total Cost)
/(Change in
Quantity)
Total Cost /
Quantity
TC / Q
Total
Variable Cost
/ Quantity
TVC / Q
Basic Formula
variable) x
Quantity
AVC x Q
Px Q
Excel formulas for the various functions: Using
the power of Excel (first row formulas) use Fill-
Down function to complete each column to
save yourself from creating a calculation in
each cell (very time-consuming). Ignore the :
mark when creating the formulas. See the
next worksheet for instructios for using the fill-
:=sum (d15- :=sum(g15-
d14)/(c15-
c14)
g14)/(c15-
c14)
:=b14*c14
Enter figure
:=50*C14
:=e14+f14
:=d14-g14
:=g15/c15
:=f15/c15
3) Total
Variable Cost4) Total Cost
(TVC)
6) Marginal
Revenue (MR) Cost (MC)
-$350
8) Average
Total Cost
9) Average
Variable Cost
(AVC)
Price/Demand Curve
(surfboards)
1) Total Revenue 2) Total Fixed
Cost (TFC)
$300
7) Marginal
|Quantity
$300
$290
(TR)
(TC)
5) Profit
(ATC)
1
$600
50
$650
$580
$280
$260
350.0
250.0
200.0
170.0
150.0
2
$600
100
$700
-$120
50.00
50
$600
$600
$90
$280
$280
3
$840
150
$750
50.00
50
$270
4
200
$240
$1,080
$1,300
$1,500
$1,680
$1,840
$1,980
$2,100
$2,200
$2,280
$2,340
$2,380
$2,400
$2,400
$2,380
$2,340
$2,280
$2,200
$2,100
$800
50.00
50
250
$450
$600
$730
$260
$600
$850
$220
50.00
50
$250
6
$600
300
$900
$200
50.00
50
50
$180
$160
$140
$240
7
$600
350
$950
50.00
135.7
$1,000
$1,050
$1,100
$1,150
$1,200
$1,250
$1,300
$1,350
$1,400
$1,450
$1,500
$1,550
$1,600
400
$840
50
50
$230
8
$600
50.00
125.0
450
500
$220
9
$600
$930
50.00
116.7
$1,000
$1,050
$1,080
$1,090|
$1,080
$1,050
$1,000
10
$120
$100
$210
$600
50.00
110.0
50
104.5
550
600
$200
11
$600
50.00
50
$80
$60
$40
$20
$0
50
50
$190
12
$600
50.00
100.0
$180
13
$600
650
50.00
96.2
$170
14
$600
700
50.00
92.9
50
$160
15
$600
750
50.00
90.0
50
800
50
50
$150
16
$600
50.00
87.5
$140
85.3
850
900
17
$600
$930
-$20
50.00
$130
18
$600
$840
-$40
50.00
83.3
50
$120
950
$730
$600
$450
19
$600
-$60
50.00
81.6
50
$110
20
$600
1000
-$80
50.00
80.0
50
$100
21
$600
1050
$1,650
-$100
50.00
78.6
50
88::::8:::::8:::::88](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb2e5ad45-b1f1-4a6d-a22c-8f3caab0bc14%2F35a0de07-906e-4fd4-a2c9-e07fa1d16cfd%2Fk2r396_processed.png&w=3840&q=75)
Transcribed Image Text:Complete Table Below (1-9):
Sum all orthe
fixed costs from
Price x Quatity above. TFC
does not vary
from unit to
Unit variable Total
cost (average Variable Cost
+ Total Fixed
Cost TFC +
|TVC
Total
Revenue -
Total Cost
TR - TC
Change in
|(Total
Revenue)
|/(Change in
|Quantity)
|Change in
|(Total Cost)
/(Change in
Quantity)
Total Cost /
Quantity
TC / Q
Total
Variable Cost
/ Quantity
TVC / Q
Basic Formula
variable) x
Quantity
AVC x Q
Px Q
Excel formulas for the various functions: Using
the power of Excel (first row formulas) use Fill-
Down function to complete each column to
save yourself from creating a calculation in
each cell (very time-consuming). Ignore the :
mark when creating the formulas. See the
next worksheet for instructios for using the fill-
:=sum (d15- :=sum(g15-
d14)/(c15-
c14)
g14)/(c15-
c14)
:=b14*c14
Enter figure
:=50*C14
:=e14+f14
:=d14-g14
:=g15/c15
:=f15/c15
3) Total
Variable Cost4) Total Cost
(TVC)
6) Marginal
Revenue (MR) Cost (MC)
-$350
8) Average
Total Cost
9) Average
Variable Cost
(AVC)
Price/Demand Curve
(surfboards)
1) Total Revenue 2) Total Fixed
Cost (TFC)
$300
7) Marginal
|Quantity
$300
$290
(TR)
(TC)
5) Profit
(ATC)
1
$600
50
$650
$580
$280
$260
350.0
250.0
200.0
170.0
150.0
2
$600
100
$700
-$120
50.00
50
$600
$600
$90
$280
$280
3
$840
150
$750
50.00
50
$270
4
200
$240
$1,080
$1,300
$1,500
$1,680
$1,840
$1,980
$2,100
$2,200
$2,280
$2,340
$2,380
$2,400
$2,400
$2,380
$2,340
$2,280
$2,200
$2,100
$800
50.00
50
250
$450
$600
$730
$260
$600
$850
$220
50.00
50
$250
6
$600
300
$900
$200
50.00
50
50
$180
$160
$140
$240
7
$600
350
$950
50.00
135.7
$1,000
$1,050
$1,100
$1,150
$1,200
$1,250
$1,300
$1,350
$1,400
$1,450
$1,500
$1,550
$1,600
400
$840
50
50
$230
8
$600
50.00
125.0
450
500
$220
9
$600
$930
50.00
116.7
$1,000
$1,050
$1,080
$1,090|
$1,080
$1,050
$1,000
10
$120
$100
$210
$600
50.00
110.0
50
104.5
550
600
$200
11
$600
50.00
50
$80
$60
$40
$20
$0
50
50
$190
12
$600
50.00
100.0
$180
13
$600
650
50.00
96.2
$170
14
$600
700
50.00
92.9
50
$160
15
$600
750
50.00
90.0
50
800
50
50
$150
16
$600
50.00
87.5
$140
85.3
850
900
17
$600
$930
-$20
50.00
$130
18
$600
$840
-$40
50.00
83.3
50
$120
950
$730
$600
$450
19
$600
-$60
50.00
81.6
50
$110
20
$600
1000
-$80
50.00
80.0
50
$100
21
$600
1050
$1,650
-$100
50.00
78.6
50
88::::8:::::8:::::88
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