Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN: 9781305506381
Author: James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher: Cengage Learning
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Question
Chapter 11, Problem 3E
a)
To determine
To write: An equation for the total revenue (TR) function in terms of Q
b)
To determine
To specify: The marginal revenue function
c)
To determine
To write: An equation for the total cost (TC) function in terms of Q
d)
To determine
To Specify: The marginal cost function
e)
To determine
To Describe: The following:
- Equation for total profits
- level of output(Q) are total profits maximized
- Price to be charged
- Total profits at the output level
f)
To determine
To describe: The answers in Part (e) by equating the marginal revenue and marginal cost functions, evaluate in Parts (b) and (d) and solving for Q.
g)
To determine
To describe: The model of market pricing behavior has been assumed in the given problem.
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Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
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