Total revenue, average revenue and graph
Given the following total-revenue function:
TR = 9Q - Q²
(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.
© BrainMass Inc. brainmass.com October 24, 2018, 8:21 pm ad1c9bdddfhttps://brainmass.com/economics/microeconomics/total-revenue-average-revenue-and-graph-94559
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.
Average Revenue, Marginal Revenue, and Marginal Cost
Having trouble understading the equations and concept.
See attachment for full problem description with proper symbols.
---
Micro
1. . Monopoly producer has a total cost function C = 66 + 2Q + Q2 (Hint: MC = 2 + 2Q). Demand for its product is Q = 10 - 0.2P (Hint: MR = 10 - 0.4P).
a. Compute and graph Average Revenue, Marginal Revenue, and Marginal Cost.
b. What are the profit-maximizing output level, price, and profits?
---
1. Two slumlords own rows of houses on opposite sides of the street. Each would gain if the other upgraded his own property, but neither wants to upgrade until the other does. Relate this situation to the Prisoner's Dilemma, and provide a table showing the situation of both landlords. Make up numerical examples as appropriate.
---