1. Firm's demand function is defined as Q = 30 - P. Use this function to compute total revenue when price is equal to 5 and when price is equal to 6. Dtermine marginal revenue equal to between P = 5 and P = 6?
2. Use total cost (TC) schedule which is presented in table below to compute average total cost, average variable cost, average fixed cost, and marginal cost when output (Q) is equal to 5.
Q
|
0
|
1
|
2
|
3
|
4
|
5
|
6
|
7
|
8
|
9
|
TC
|
5
|
7
|
8
|
10
|
14
|
20
|
28
|
38
|
50
|
72
|
3. Use demand schedule that is presented in table below to find out optimal rate of production and price when firm has constant marginal cost of $10 per unit.
Quantity
|
1
|
2
|
3
|
4
|
5
|
6
|
7
|
8
|
9
|
10
|
Price
|
80
|
60
|
48
|
40
|
34
|
29
|
25
|
20
|
15
|
10 |