Homework Answers
3)
i. TR = P*Q = (80-30Q)*Q =
80Q-30Q^2
MR = 80-60Q
ii. TR at Q=10, TR=80*10-30*10^2 =
-2200
TR at Q=9.6, TR=80*9.6-30*(9.6)^2 = -1996.8
So, change in TR = -1996.8-(-2200)=203.2
4)
AC=2+100/Q
i. TC = 2Q+100, Fixed cost = 100
ii. MC =2
TC at Q=15, TC = 2*15+100 = 130
TC at Q=13, TC = 2*13+100 = 126
So, change in TC =126-130=-4
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