Problem 1: Given the following total-revenue function:
TR = 9Q - Q2
(a) Derive the total-, average-, and marginal-revenue schedules from Q = 0 to Q = 6 by 1' s.
(b) On the same set of axes, plot the total-,average-,and marginal-revenue schedules of part (a)
Problem 2: Given the follow total-cost schedule:
Q 0 1 2 3 4
TC 1 12 14 15 20
Derive the average-and marginal-cost schedules.
Problem 3: (a) one the same set of axes, plot the total-,average-,and marginal-cost schedules of problem 2. (b) explain the relationship among the total-, average-, and marginal-cost curves in part (a)
Problem 4: With the total-revenue curve of problem 1 and the total-cost curve of problem 2, drive the total-profit function and show how the firm determines the profit-maximizing level of output.
Your answers should identify and analyse the relationships between total, average, and marginal costs. Any results produced or claims made should be supported with logical reasoning and with evidence from the scenario, textbook, and/or other supplemental resources.