PROBLEMS

1. . Given the following total-revenue function: TR = 9Q Q2 (a) Derive the total - , average- , and marginal revenues schedules from Q = 0 to Q = 6 by 1s. (b) On the same set of axes, plot the total -, average- , and marginal revenue schedules of part (a). 2. With reference to your figure in Problem 3b, explain the relationship among the total -, average- , and marginal revenue curves. 3. Given the following total product schedule: L 0 1 2 5 3 4 5 6 7 8

TP 0 2

9 12 14

15 15 14

Derive the average and marginal product schedules. (a) On the same set of axes, plot the total - , average-, and marginal product schedules of Problem 3. (b) What is the relationship between the total -, average- , and marginal product curves in part (a) ? 4. Given the following total cost schedule :

Q TC

0 1

1 12

2 14

3 15

4 20

Derive the average and marginal cost schedules.