Reference no: EM1370073

Evaluate the price (P) and the output (Q) data in the following table. 
Q P TR MR AR
0 $80
1 70
2 60
3 50
4 40
5 30
6 20
7 10
8 0

A. Compute the related total revenue (TR), marginal revenue (MR), and average revenue (AR) figures.
B. At what output level is revenue maximized?

Revenue Maximization.

Assume the following output (Q) and price (P) data. 
Q P TR MR AR
0 $50
1 45
2 40
3 35
4 30
5 25
6 20
7 15
8 10
9 5
10 0
A. At what output level is revenue maximized?
B. Why is marginal revenue less than average revenue at each price level?

Profit Maximization.

Fill in the missing data for price (P), total revenue (TR), marginal revenue (MR), total cost (TC), marginal cost (MC), profit ( p ), and marginal profit (M p ) in the following table.
Q P TR MR TC MC p M p
0 $50 $ 0 $-- $ 10 $-- $ - 10 $--
1 45 45 45 60 50 - 15 - 5
2 40 35 115 - 35
3 35 175 60 - 35
4 120 15 65 - 120 - 50
5 25 5 310 - 65
6 20 - 5 75 - 80
A. At what output (Q) level is profit maximized (or losses minimized)? Explain.
B. At what output (Q) level is revenue maximized?