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Is the QProf-Max the same numerical value as the QATC-Min OR QTR-Max that you computed in the previous part?If not, what is the mathematical relationship
- Is the QProf-Maxthe same numerical value as the QATC-MinOR QTR-Maxthat you computed in the previous part?If not, what is the mathematical relationship among the three? (Put the relationships among them by using inequality signs, like A>B>C.)
- If you are a rational producer, which scale of operation(which of the above-mentioned Q's) do you chooseto operate on? In other words, what is the optimal scale of operation for your business, given the technology that you have and given the current market demand for your product?
- DoesQProf-Maxminimizeyourper-unitcostofproduction(akaATC)?
- DoesQProf-MaxmaximizeyourTotalRevenue (TR)?
Q_D | P |
0 | 2,500 |
10,000 | 2,300 |
20,000 | 2,100 |
30,000 | 1,850 |
40,000 | 1,600 |
50,000 | 1,480 |
60,000 | 1,450 |
70,000 | 1,360 |
80,000 | 1,200 |
90,000 | 1,000 |
100,000 | 800 |
Q | FC | VC | TC | MC | AFC | AVC | ATC | Profit | Q_D | P | TR | AR | MR | Change in Q | Change in P | Elasticity | Profit | |
0 | 10,000,000 | 0 | 10,000,000 | - | - | - | - | - | 0 | 2,500 | - | |||||||
10,000 | 10,000,000 | 8,000,000 | 18,000,000 | 800 | 1,000 | 800 | 1,800 | 5,000,000 | 10,000 | 2,300 | 23,000,000 | 2,300 | 2,300 | 2 | (0.08) | -24.000000000000 | 5,000,000 | |
20,000 | 10,000,000 | 15,000,000 | 25,000,000 | 700 | 500 | 750 | 1,250 | 17,000,000 | 20,000 | 2,100 | 42,000,000 | 2,100 | 1,900 | 0.66666667 | (0.09) | -7.333333333333 | 17,000,000 | |
30,000 | 10,000,000 | 21,000,000 | 31,000,000 | 600 | 333 | 700 | 1,033 | 24,500,000 | 30,000 | 1,850 | 55,500,000 | 1,850 | 1,350 | 0.4 | (0.13) | -3.160000000000 | 24,500,000 | |
40,000 | 10,000,000 | 23,000,000 | 33,000,000 | 200 | 250 | 575 | 825 | 31,000,000 | 40,000 | 1,600 | 64,000,000 | 1,600 | 850 | 0.28571429 | (0.14) | -1.971428571429 | 31,000,000 | |
50,000 | 10,000,000 | 32,000,000 | 42,000,000 | 900 | 200 | 640 | 840 | 32,000,000 | 50,000 | 1,480 | 74,000,000 | 1,480 | 1,000 | 0.22222222 | (0.08) | -2.851851851852 | 32,000,000 | |
60,000 | 10,000,000 | 45,000,000 | 55,000,000 | 1,300 | 167 | 750 | 917 | 32,000,000 | 60,000 | 1,450 | 87,000,000 | 1,450 | 1,300 | 0.18181818 | (0.02) | -8.878787878788 | 32,000,000 | |
70,000 | 10,000,000 | 58,000,000 | 68,000,000 | 1,300 | 143 | 828.5714 | 971 | 27,200,000 | 70,000 | 1,360 | 95,200,000 | 1,360 | 820 | 0.15384615 | (0.06) | -2.401709401709 | 27,200,000 | |
80,000 | 10,000,000 | 75,000,000 | 85,000,000 | 1,700 | 125 | 937.5 | 1,063 | 11,000,000 | 80,000 | 1,200 | 96,000,000 | 1,200 | 80 | 0.13333333 | (0.13) | -1.066666666667 | 11,000,000 | |
90,000 | 10,000,000 | 95,000,000 | 105,000,000 | 2,000 | 111 | 1055.556 | 1,167 | (15,000,000) | 90,000 | 1,000 | 90,000,000 | 1,000 | (600) | 0.11764706 | (0.18) | -0.647058823529 | (15,000,000) | |
100,000 | 10,000,000 | 120,000,000 | 130,000,000 | 2,500 | 100 | 1200 | 1,300 | (50,000,000) | 100,000 | 800 | 80,000,000 | 800 | (1,000) | 0.10526316 | (0.22) | -0.473684210526 | (50,000,000) |
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