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Managerial Economics, 7e (Keat)
(Online Only) Review of Mathematical Concepts Used in Managerial Economics
Analytical Questions
1) The demand curve is given by:
QD = 5000 - 10 P
Find equations for:
a. Total revenue
b. Marginal revenue
2) The demand curve is given by:
QD = 5000 - 10P
Find the price and quantity at which total revenue is maximized and the maximum revenue.
3) For each of the following sets of supply and demand curves, calculate equilibrium price and
quantity.
a. QD = 1000 - P; QS = P
b. QD = 1500 - 2P; QS = 100 + 2P
c. QD = 2000 - 3P; QS = -300 + 3P
4) For each of the following cost functions, find MC, AC, and AVC.
a. TC = 40,000 + 20 Q
b. TC = 1000 + 2Q + 0.1 Q2
5) For each of the following cost functions, if possible, find minimum AC and minimum AVC.
a. TC = 40,000 + 20 Q
b. TC = 1000 + 2Q + 0.1 Q2
Answer the following questions using the demand and supply equations below.
Qd = 80 - 2P
6) Refer to the demand and supply equations. What are the equilibrium price and quantity?
7) Refer to the demand and supply equations. At a price of $35, there will be ________.
8) Refer to the demand and supply equations. At a price of $5, there will be ________.
9) Refer to the production function. The total product at 4 units equals ________ units.
10) Refer to the production function. The marginal product at 5 units equals ________ units.
11) Refer to the production function. The average product at 5 units equals ________ units.
12) If the total cost of producing one unit of the output is $100 and the marginal cost of that unit
is $20, the average fixed cost of producing two units of output is ________.
