What is the marginal revenue from the last unit sold

Assignment Help Macroeconomics

Reference no: EM133295046

Assignment:

Your company has estimated its total cost to be TC = 185,000 + 60Q + 0.007Q²; its marginal cost is thus MC = 60 + 0.014Q, where Q is the quantity of units produced and TC is in dollars. Since your market is relatively competitive, your company is able to sell its output for $179 each (which thus yields MR = 179 and TR = 179Q).

a. Produce a chart in Excel showing TC and TR with Q on the horizontal axis. Have Q go from 0 to 10,000 units (each row of your Q column can increase by a relatively large number so that your table isn't huge). Produce a second chart showing MC and MR with Q again on the horizontal axis.

b. What is the optimal level of output for your company to produce/sell? What is the marginal revenue from the last unit sold?

c. What are the total revenue, total cost, and profit (net benefit/net revenue/etc.) from selling the optimal number of units?

d. An eager intern at your company suggests that, since the company earns $179 revenue for each unit sold, then the company could make still more profit by selling more than the level chosen in part b; why would your company not want to produce and sell more output than the level you chose in part b?

Reference no: EM133295046

Questions Cloud

Characteristics for evaluating qualitative conclusions : Analyze the four essential characteristics for evaluating qualitative conclusions for such research studies. Report the usefulness of coding data

Conduct a quality evaluation : Explain a detailed work plan that includes concrete action steps assigned to specific people with clear deadlines and/or timelines

What would be the pros and cons of financial industry : What would be the advantages and drawbacks of such an appraoach? Do you agree with it? Why or why not?

Review risk factors, screening, and strategies : Mental health/mental disorders, health disparity issue of a vulnerable population (i.e. adolescent birth rate, binge drinking), or addiction such as substance

What is the marginal revenue from the last unit sold : What is the optimal level of output for your company to produce/sell? What is the marginal revenue from the last unit sold?

Describe issues in oak park neighborhood : Describe issues in Oak Park Neighborhood and Ivanhoe Neighborhood. What are they doing to alleviate these issues

Describe how the fnp would clinically manage : FNP 591 United States University Generate at least 5 differential diagnoses for a cough. Describe how the FNP would clinically manage and follow up this patient

How have you clustered or grouped the data : How have you clustered or grouped the data to identify your patient's priority problems What are the criteria you are using to identify and plan interventions

Discuss how such minute organisms could be useful : Discuss how such minute organisms could be useful in the detection of the bacterial diseases

User Account

All Pages