Marginal revenue excel

Grader - Instructions Excel 2016 Project Chapter 10 Problem 9-1 (V2) Project Description: In this problem, you will calculate the prices and marginal revenues for the firms in two cities, determine the profit-maximizing outputs and prices, and the price elasticity of demand in each city for each price-quantity combination. Steps to Perform: Points Possible Step Instructions 1 Use a cell reference or a single formula where appropriate in order to receive full credit. Do not copy and paste values or type values, as you will not receive full credit for your answers. For the purpose of grading the project, you are required to perform the following tasks: 0 Start Excel. 2 In cell E18, by using relative and absolute cell references, calculate the price for City 1 for the output in cell C18. Copy the formula from cell E18 down the column to cell E30. 1 3 In cell F18, by using relative and absolute cell references, calculate the price for City 2 for the output in cell D18. Copy the formula from cell F18 down the column to cell F30. 1 4 In cell G18, by using relative and absolute cell references, calculate the marginal revenue for City 1 for the output in cell C18. Copy the formula from cell G18 down the column to cell G30. 1 5 In cell H18, by using relative and absolute cell references, calculate the marginal revenue for City 2 for the output in cell D18. Copy the formula from cell H18 down the column to cell H30. 1 6 In cell H32, by using a cell reference, enter the profit-maximizing output for City 1. 1 7 In cell K32, by using a cell reference, enter the price that maximizes the profit for City 1. 1 8 In cell H33, by using a cell reference, enter the profit-maximizing output for City 2. 1 9 In cell K33, by using a cell reference, enter the price that maximizes the profit for City 2. 1 10 In cell G35, by using cell references, calculate the maximum profit for both the firms. 1 11 In cell J19, by using relative and absolute cell references, calculate the price elasticity of demand for City 1 for the output in cell C19. Copy the formula from cell J19 down the column to cell J30. 1 12 In cell K19, by using relative and absolute cell references, calculate the price elasticity of demand for City 2 for the output in cell C19. Copy the formula from cell K19 down the column to cell K30. 1 13 In cell F37, by using cell references, calculate the value of p2/p1 using the prices that maximize the total profit for the firms. 1 14 In cell D38, by using cell references, calculate the value of (1+1/e1)/(1+1/e2). 1 15 In cells H37-I37, determine whether the value of p2/p1 is greater, equal to, or less than the value (1+1/e1)/(1+1/e2) 1 16 Save the workbook. Close the workbook and then exit Excel. Submit the workbook as directed. 0 Created On: 07/05/2019 1 Chapter 10 Problem 9-1 (V2) Grader - Instructions Excel 2016 Project Total Points Created On: 07/05/2019 2 14 Chapter 10 Problem 9-1 (V2) Problem 9-1 Use a cell reference or a single formula where appropriate in order to receive full cre values or type values, as you will not receive full credit for your answers. The Jam Factory makes boutique jams that it sells in specialty stores in two different cities demand function is p 1 = 12 - 0.5Q 1 and the marginal revenue function is MR 1 = 12 - Q 1. I demand and marginal revenue functions are p 2 = 20 - Q2 and MR 2 = 20 - 2Q 2. The firm’s + 6Q , where Q = Q 1 + Q 2. Thus, the firm’s marginal cost of production is 6 per unit. p1 MR1 p2 MR2 C(Q) Q = = = = = = 12 12 20 20 10 Q1 + + 0.5 Q1 Q1 Q2 2 Q2 6Q Q2 a) Solve for the price and marginal revenue in each city at the corresponding quantit Jam Factory price discriminates by charging a different price in each city. Find th quantities and prices. Verify that the marginal revenues are the same in each city a quantities. Determine the firm’s profit. b) Calculate the price elasticity of demand in each city for each price-quantity comb results are consistent with Equation 10.5: (Hint: The price elasticity of demand for City 1 is ε 1 = -2p 1/Q 1 and for City 2 is ε ε1 ε2 = = Q1 0 1 2 3 4 Q2 0 1 2 3 4 -2 p1 / Q1 -1 p2 / Q2 a) p1 p2 MR1 MR2 MC 6 6 6 6 6 5 6 7 8 9 10 11 12 5 6 7 8 9 10 11 12 6 6 6 6 6 6 6 6 a) The firm's profit-maximizing output for City 1 is The firm's profit-maximizing output for City 2 is The maximum profit for the firm is b) The value of p 2/p 1 is which is . when the price is when the price is .