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Econ 303

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Submitted By fredeua
Words 910
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E303.
Spring 2012

Problem Set #2 (Note: For the first question of this problem set (parts a to d) use EXCEL to generate numbers. Replace the below table with your answers ON THIS SHEET. Similarly, in the rest of the assignment you may use EXCEL, but if you do so, insert figures and tables from EXCEL onto this sheet.

1. Consider the total profit function ( = TR - TC = (22 –Q)Q – (10+2Q+Q2 )

a. Create a table that shows Total Revenue, Total Cost and Total Profit, (in your table, let quantity run from 0 to 13 in increments of 1.) Indicate in your table where both total profits and total revenues are maximized .

Max total profits highlighted in yellow, max total revenues is in red.

|Q |TR |TC |TP |
|0 |0 |10 |-10 |
|1 |21 |13 |8 |
|2 |40 |18 |22 |
|3 |57 |25 |32 |
|4 |72 |34 |38 |
|5 |85 |45 |40 |
|6 |96 |58 |38 |
|7 |105 |73 |32 |
|8 |112 |90 |22 |
|9 |117 |109

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