UNIVERSITY OF THE BAHAMAS
ECON 320 – MANAGERIAL ECONOMICS
Homework Assignment 1
Answer the questions below and show all working.
1. Finish the table by calculating total revenue, marginal revenue, marginal cost, profit, marginal profit and
average profit for the given output, price and total cost. Graph the MR and MC curves and indicate at
which quantity and price is profit maximized. (10)
Q
P
TC
TR
(P *Q)
MR
(∆R/∆Q)
MC
(∆C/∆Q)
π (profit)
(TR – TC)
Marginal π
(∆π/∆Q)
Average π
(π/Q)
0
–
0
0
–
–
0
1
$90
10
90
90
10
80
80
80
2
$85
30
170
80
20
140
60
70
3
$80
60
240
70
30
180
40
60
4
$75
100
300
60
40
200
20
50
5
$70
150
350
50
50
200
0
40
6
$65
210
390
40
60
180
–20
30
7
$60
280
420
30
70
140
–40
20
8
$55
360
440
20
80
80
–60
10
9
$50
450
450
10
90
0
–80
0
550
450
0
100
-100
-100
$45
