Revenue
1. Identify the MR to Q = 5. Demand curve is in the shape: P = 1000 – Q2
2. Demand curve is P=900 – 0,005Q:
a) what is the equation MR
b) in what amounts will be MR equal to zero
c) in what amounts will be TR to maximum
d) what is the maximum income
3. The function of the total cost to the firm producing trekking boots are TC = 5
000 000 + 20*q + 0,005*q2. You have given the price function P = 2 000 –
0,0045Q.
Identify corporate profits produced in the quantities sold shoes q = 200 000 and
graphically display this situation.
Costs
5. Is given the function of the total cost TC = 0,06q3 + 0,9q2 + 10q +10. Define
for q = 100
TC, AC, AVC and MC.
6. The cost function of firms producing chairs is: TC = 100 + 130q – 25q2+
(5/3)q3.
a) define FC, AVC, AFC
b) at what level of output will begin to enforce the declining revenues from a
variable output.
c) in what amounts of output has firm minimum average variable cost (AVC).
7. From Prague to Bratislava, we can travel by plane or bus. A ticket costs 2500
CZK and clearance and the flight lasts 1,5 hours. A bus ticket costs only 350
CZK, but the trip takes 6 hours. What mode of transport choice:
a) entrepreneur, appreciate an hour at 600 CZK
b) student, appreciate an hour at 50 CZK