Chapter 6 & 7 Update

Name:
Team Number:

Honor Code: With my signature below, I affirm that while I may have worked with other team members on this assignment, the final product is my own work. This means (a) I wrote the work in this assignment myself and did not copy or allow another person to copy and (b) the work reflects my own understanding of the material. Violations of this code are subject to disciplinary action with the Vice President of Student Affairs. This assignment must be signed in order to be graded.

Signature______Date______

1)Use EXCEL to compute your team’s Marginal Revenue (MR), Marginal Cost (MC), and Marginal Profit (MP). Use what the text calls the “Forwards-Backwards Method”, where h = 0.01 to do your calculations. Arrange them on a table, like we did in class. Then graph all three on ONE set of axes. Print out the first few rows of the table, and print the graph.

Carefully examine your marginal graphs and compare them to the original , , and graphs from previous Updates. Verify that profits are maximized on at roughly the same point where the Marginal Profit equals zero. If this is NOT the case, then something is wrong with either your profit function or your marginal profit graph. Be sure to fix it before moving on to the next chapter update and make sure you understand WHY these points should coincide.

2) Look for values of q where MP is close to zero. Make a new table and copy all the formulas (Revenue, Marginal Revenue, Marginal Profit, etc.) to it. Find to the (nearest tenth) the value of q that makes the MP equal to zero. What is the profit at this point?

q =
Profit =

3) Calculate the Marginal Revenue for your team’s data at 100,000 units (q = 100). Use the “Forwards-Backwards Method”, where h = 1, to do your calculations, keeping as much decimal place accuracy as possible. Report your answer to NINE decimal places. Include proper units in your answer. Show all of your calculations

Calculations
Answer

4) Calculate the Marginal Revenue for your team’s data at 100,000 units (q = 100). Use the “Forwards-Backwards Method”, where h = 0.01, to do your calculations, keeping as much decimal place accuracy as possible. Report your answer to NINE decimal places. Include proper units in your answer. Show all of your calculations

Calculations
Answer

5) Compare your results from #(3) and #(4) above. Explain how close they are and why you think they are as close as they are.

Explanation

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