(a) Derive the total-revenue, average-revenue, and marginal-revenue schedules
from Q = 0 to Q = 6 by 1s
(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.
Solution Summary
Excel file contains :
1. Average and marginal revenue curves formulas, schedules
2. Curves in the form of graph
3. Explanations for observed relationships between curves.
... a. Compute and graph Average Revenue, Marginal Revenue, and Marginal Cost. Q=10-0.2P Reversing we get P=(10-Q)/0.2 = 50-5Q Total Revenue (TR) = P*Q=(50-5Q)* ...
... You can see from the graph that total revenue is maximized at output level 5. From these calculations we can see that the average value increases when MR is ...
... same set of axes, graph the relevant portions of the average and marginal revenue functions. Quantity (Q) Avg Revenue Marginal Revenue Total Revenue 1 $ (62.00 ...
... The cost curves show the marginal cost (MC) and average total cost (ATC) of the single producer. The graph also shows the marginal revenue curve faced by this ...
... a. Write the expressions for the firm's Total Revenue, Marginal Revenue, Average Cost and Marginal Cost. b. Show on a graph, supported by calculations, what ...
... It explains the total cost involved with a particular product ... The revenue per unit can be shown below -. The above table shows that the average revenue per unit ...
... As and So, to minimize the total cost, it would ... The cost and the revenue functions (in dollars) for a ... The average cost (in dollars) per item of manufacturing x ...
