Problem: With the total-revenue schedule of problem (revised derivatives) and the total-cost schedule of problem given (cost function), show the profit-maximizing level of output?
Problem history:
1. Derive the total-revenue, average-revenue, and marginal-revenue schedules from Q = 0 to Q = 4 by 1s
Average revenue (AR) = total revenue (TR) / Q
Marginal revenue (MR) = change in total revenue / change in Q
For example Q TR AR MR
2 14 7
3 18 6 4
Given the following total-cost schedule:
Q 0 1 2 3 4 5 6 7 8
TP 0 2 5 9 12 14 15 15 15
Derive the average- and marginal-cost schedule