What is the marginal revenue for the following: qty: 100, 200 Price:39750, 39500 Revenue:3975000, 7900000 Total Cost: 2000000,4000000 Profits: 1975000,3900000 Marginal Revenue ___?, ___? Suppose that managers at Honda are deciding how to price the new Honda Accord. The managers estimate that their total costs increase by $20,000 for each car they produce. They also estimate the demand curve they face; it is described by the equation: Q = -0.4 P + 16,000, where Q represents the quantity of Honda Accords they will sell and P represents the price they charge in US dollars. We can re-write that demand curve as: P = 40,000 - 2.5 Q. Take every possibly quantity that the managers might choose between 0 and 7,000 in units of 100. For each possible quantity, calculate the associated price the managers would need to charge, the revenue they would earn, and the total costs. You can then calculate profits for each level of quantity. Highlight the cell that contains the highest value of profit. Finally, you can also approximate marginal revenue here as the change in total revenue after the next 100 cars are produced. At what quantity does marginal revenue roughly equal marginal cost? Highlight that level of marginal revenue. Quantity Price Revenue Total Costs Profits Marginal Revenue 100 $39,750 $3,975,000 $2,000,000 $1,975,000 200 $39,500 $7,900,000 $4,000,000 $3,900,000 300 $39,250 $11,775,000 $6,000,000 $5,775,000 400 $39,000 $15,600,000 $8,000,000 $7,600,000
What is the marginal revenue for the following: qty: 100, 200 Price:39750, 39500 Revenue:3975000, 7900000 Total Cost: 2000000,4000000 Profits: 1975000,3900000 Marginal Revenue ___?, ___? Suppose that managers at Honda are deciding how to price the new Honda Accord. The managers estimate that their total costs increase by $20,000 for each car they produce. They also estimate the
P = 40,000 - 2.5 Q.
Take every possibly quantity that the managers might choose between 0 and 7,000 in units of 100. For each possible quantity, calculate the associated price the managers would need to charge, the revenue they would earn, and the total costs. You can then calculate profits for each level of quantity. Highlight the cell that contains the highest value of profit.
Finally, you can also approximate marginal revenue here as the change in total revenue after the next 100 cars are produced. At what quantity does marginal revenue roughly equal marginal cost? Highlight that level of marginal revenue.
| Quantity | Price | Revenue | Total Costs | Profits | Marginal Revenue |
| 100 | $39,750 | $3,975,000 | $2,000,000 | $1,975,000 | |
| 200 | $39,500 | $7,900,000 | $4,000,000 | $3,900,000 | |
| 300 | $39,250 | $11,775,000 | $6,000,000 | $5,775,000 | |
| 400 | $39,000 | $15,600,000 | $8,000,000 | $7,600,000 |
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