I would like to have the following sample problems solved in EXCEL format so that I can see the formula used.

1. TC = 17 + 2q2

Suppose the firm's output can be sold (in integer units) at $57 per unit.

Using calculus and formulas (but no tables or spreadsheets) to find a solution, HOW MANY UNITS should the firm produce to maximize profit?

2. Assume that a monopolist faces a demand curve for its product given by:

p = 80 - 2q

Further assume that the firm's cost function is:

TC = 560 + 13q

Using calculus and formulas (but no tables or spreadsheets) to find a solution, WHAT IS THE PROFIT (rounded to the nearest integer) for the firm at the optimal price and quantity?

Round the optimal quantity to the nearest hundredth before computing the optimal price, which you should then round to the nearest cent. Note: Non-integer quantities may make sense when each unit of q represents a bundle of many individual items.

Hint: Define a formula for Total Revenue using the demand curve equation. Then take the derivative of the Total Revenue and Total Cost formulas. Use these derivative equations to perform a marginal analysis.

Solution Summary

The problem set deals with finding the quantity from demand equation and maximum revenue.

... To choose the better option one of the tools provided by the managerial economics is marginal analysis. ... (MARGINAL ANALYSIS) Managerial Economics - 5 -. ...

Economics: Cost Analysis. ... average fixed cost, average variable cost, and marginal cost at ... The problem set deals with questions under economics: Cost estimation. ...

Managerial economics. ... D. The firm has a marginal cost equation that is shown above as MC=$20+$1Q. Suppose something happens to cause that equation to change ...

... Why is the concept of scarcity important to the definition of economics? 2) (Marginal analysis) The owner of a pizzeria is deciding whether to increase the ...

Regression analysis for Managerial Economics Assignment ... total fixed cost and of the marginal cost from ... of regression model for a Managerial Economics Assignment ...

...Economics of Health Administration. Question 3: Cost Benefit Analysis. Given the following information: Marginal Total Total Net Marginal Marginal Net Units ...