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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)
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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