Given a US firm’s average revenue function: AR = 36 – 1.5Q Calculate the price and total revenue at the given units Quantity (Q) 0 3 6 9 12 15 18 21 24 Price (P) Total Revenue (TR) Plot the AR and TR curves. Discuss your findings. Discuss in detail the firm’s marginal revenue. If the firm has a total cost function of: TC = 144 + 3Q Explain what this means in terms of profit/loss using any appropriate illustrations and mathematical calculations. You will need to calculate profit optimisation for this firm.
Given a US firm’s average revenue function: AR = 36 – 1.5Q Calculate the price and total revenue at the given units Quantity (Q) 0 3 6 9 12 15 18 21 24 Price (P) Total Revenue (TR) Plot the AR and TR curves. Discuss your findings. Discuss in detail the firm’s marginal revenue. If the firm has a total cost function of: TC = 144 + 3Q Explain what this means in terms of profit/loss using any appropriate illustrations and mathematical calculations. You will need to calculate profit optimisation for this firm.
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:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter11: Price And Output Determination: Monopoly And Dominant Firms
Section: Chapter Questions
Problem 3E
Related questions
Question
Given a US firm’s average revenue function:
AR = 36 – 1.5Q
- Calculate the price and total revenue at the given units
Quantity (Q) |
0 |
3 |
6 |
9 |
12 |
15 |
18 |
21 |
24 |
Price (P) |
|
|
|
|
|
|
|
|
|
Total Revenue (TR) |
|
|
|
|
|
|
|
|
|
- Plot the AR and TR
curves. Discuss your findings.
- Discuss in detail the firm’s marginal revenue.
- If the firm has a total cost function of:
TC = 144 + 3Q
Explain what this means in terms of
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