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Coursehero does not allow direct upload of Excel sheets. This is the full reference. *** The answers in green are already correct, I am needing
Coursehero does not allow direct upload of Excel sheets. This is the full reference. ***
The answers in green are already correct, I am needing help with the rest of the sheet. Thank you
Consider an inverse demand curve for a firm with pricing power: Last Row 180 P =200 -0.05 Q. The Marginal Cost function is: MC =50 +0.2 Q; Fixed Cost (FC)=17,500. Enter P and MC functions in the table to the right and fill down. You can use formulas in E4:E8, dragging them into the proper row 4 cells. TR Q Price MR MC ATC TC Profit a. What is the total revenue (TR=P*Q) function? 199.95 1 199.95 199.9 50.2 17550.1 17550.1 -17350.15 250 1) Intercept or Q coefficient 9875 50 197.5 195 50 405 20250 10375 H H 199.95 2) Q coefficient 19500 100 195 190 70 235 23500 4000 225 1 3) Q2 coefficient 28875 150 192.5 185 30 181.6666667 27250 1625 38000 200 190 180 90 157.5 31500 6500 200 b. What is the marginal revenue (MR) function? Enter MR values in table. 46875 250 187.5 175 100 145 36250 10625 199.9 185 110 138.3333333 175 4) Intercept or Q coefficient 55500 300 170 41500 14000 H H 0.1 5) Q' coefficient 63875 350 182.5 165 120 135 47250 16625 150 1 6) Q2 coefficient 72000 400 180 160 130 133.75 53500 18500 79875 450 177. 155 140 133.8888889 60250 19625 125 c. Set MR function equal to MC function and solve for the profit max (max) quantity of output (Qpmax ) and total revenue. 87500 500 175 150 150 135 67500 20000 100 1 7) Qumax ? 94875 550 172.5 145 160 136.8181818 75250 19625 8) Total Revenue 102000 600 170 140 170 139.1666667 83500 18500 108875 650 167.5 135 180 141.9230769 92250 16625 d. What is the total cost (TC) function and the value of TC at amax Q? {Hint: Think 50 "integration" of the MC function and then add fixed cost (FC).) Enter TC function in table and fill down. ATC (Ave. Total Cost) is TC/Q. Enter this function, too. 115500 700 165 130 190 145 101500 14000 121875 750 162.5 125 200 148.3333333 111250 10625 25 1 9) Intercept or Q coefficient {Think FC} 12800 800 160 120 210 151.875 121500 6500 50 1 10) Q coefficient 133875 850 157.5 115 220 155.5882353 132250 1625 0 100 200 300 400 500 600 700 800 900 10 00 11) Q2 coefficient 139500 900 155 110 230 159.4444444 143500 -4000 - Price - MR - MC ATC 1 12) Total Cost at Qumax 144875 950 152.5 105 240 163.4210526 155250 -10375 1 13) What is the resulting maximum profit level (TR-TC)? 150000 1000 150 100 250 167.5 167500 17500 1 14) What is point elasticity of demand at Qmax ? Ed = dQ/dP * P/Q. Note, do/dP =-1/.05 for this problem.What is the mark-up factor and that value times MC? 1.1666667 15) Mark-up factor 1 16) Mark-up factor *MC C 1 17) What is the value of Price at Tmax Q? (P amax) 1 18) Set the functions for P and MC equal to each other and solve for that value of Q such that price equals marginal cost. At what value of Q does P=MC? (Qp=mc) 1 19) What is the value of MC at the max Q? (MCmax a) Compute the following values: 25 20) (P nmax Q - MCxmax a) 1 21) (Qp=mc - Qumax ) 1 22) What is a good estimate of the value of dead-weight loss? {Hint: Remember the triangle formula for area.} 1 23) What is the value of the Lerner IndexStep by Step Solution
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