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Salvatore Chapter 3
Given the following total revenue function: TR= 9Q-Q2
1a) Derive the total-, average-, and marginal-revenue schedules from Q= 0 to Q=6 by 1's. Note:
1. DQ9: Does maximum sales (revenue) equal maximum profit ( see figure 3-4)
2. Revised P1a: Derive the total-revenue, average-revenue, and marginal-revenue schedules from Q =0 to Q=4 by 1s.
Average revenue (AR)= total revenue (TR)/Q
Marginal revenue (MR)= change in total revenue/change in Q.
2. Revised P9: With the total-revenue schedule of problem 1 and the total cost schedule of Problem 7, show the profit maximizing level of output (profit=TR-TC)
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