Q

0 1 2 3 4 5 6

B(Q)
0 200 300 390 450 480 500

C(Q)
0 30 70 120 180 255 330

N(Q)
0 170 230 270 270 225 170

MB(Q)
-200 100 90 60 30 20

MC(Q) MNB(Q)
-30 40 50 60 75 75 -170 60 40 0 -45 -55

What I learned from this assignment:

This was great experience, one interesting thing I learned, then later confirmed on the Monopoly assignment was just how many factors really go in to determining the cost of a product. The importance these graphs and tables have on businesses. The relationship that costs (i.e. marginal cost) has a direct impact on the companys ability to stay in business. All this is shown in a simple and easy to understand manor. Ive found it extraordinary how simple it can be to tell if a business is going to make money on the manufacturing and selling of their product, of course this is assuming these are the only factors impacting the price.

1. NB is at its peak on the graph. 2. NB # is greatest on the chart. 3. MB intersect MC on graph. 4. MB = MC on chart. 5. MNB cross the X - axis. 6. MNB = 0 on chart. 7. Furthest vertical distance between on graph.

600 500 400 B(Q) C(Q) N(Q)

Price

300 200 100 0

0 -100 1 2 3 4 5 6 7

MB(Q) MC(Q) MNB(Q)

Quantity

Output 0 1 2 3 4 5

Price 20 18 16 14 12 10

TR 0 18 32 42 48 50

MR 18 14 10 6 2 10

TC 20 21 24 30 40 55

ATC 0 21 12 10 10 11

MC 0 $1 $3 $6 $10 $15

Monopoly Profit -20 -3 8 12 8 -5

Monopoly Profit: 1. 2. 3. 4.

Solution:

DMR = MC....................................................... Q = 3 Go up to demand............................................ P = 14 Go to average total cost................................. ATC = 10 Solve for ...................................................... = 24

Copy your work from your marginal analysis assignment to the first tab for the e-Portfolio assignment . 1pt Label the tabs at the bottom: Marginal Analysis and Monopoly by right clicking on them and then clicking rename. 2pts Delete any extra sheets by right clicking on the extra tab and then click delete. 1pt Using formulas, calculate the missing cells for the monopoly. 15pts Create 2 embedded graphs (title each graph and label the X-axis and y-axis for each). 6pts 1st graph: graph the following lines against output - price (demand), TR, MR, ATC, TC, MC, and Profit. 7pts draw an red line with a blue glow to indicate where it is optimal to produce. 1pt 2nd graph: graph the following lines against output - price (demand), MR, ATC, and MC. 4pts draw an red line with a blue glow to indicate where it is optimal to produce. 1pt In a text box write the 4 steps to solve for the monopoly profit off of the graph and what is steps information is. 8pts Draw the perimeter of the monopoly profit in black dashed lines. 1pt In a separate text box relate what you learned from the marginal analysis graph to the 1st graph. 8pts Highlight the optimal output level in the chart in a bright blue. 1pt Submit it to your e-Portfolio and enter in your web address to your e-Portfolio to the drop box in Connect. 2 pts

1st graph Monopoly

60 50 20

2nd graph Monopoly

40
30 15 TR Price MR TC 10 0 1 -10 -20 2 3 4 5 ATC MC

Price

20

MR
10 ATC

MC 5

Profit

0 1 2 3 Quantity 4 5

-30

Quantity