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Follow-Up Questions for Marginal Analysis Topic

(1) DON'T FORGET

Everyone needs to respond to the main question on MARGINAL ANALYSIS above. A quality INITIAL POSTING on this is worth 9 points. You must then post a MINIMUM of 2 additional quality RESPONSES to another student's post (or to my posts) to earn the additional 6 points. A total of 15 points can be earned on this TDA topic. Also, the minimum of 3 postings must be on 3 different days to earn the full TDA points on this topic.  (the same rules apply to our other graded topic CONTROLLING COSTS).  Together the two TDA topics are worth a total of 30 points.

Your first quiz next week will cover TCO-A (Supply and Demand) and TCO-B (Elasticity) from week 1 as well as TCO-C and TCO-D from this week. I've posted a QUIZ 1 GUIDELINES to assist you in preparing for our first QUIZ in week 3. I've also posted the PROJECT PART 1 (PP1) SPECIFICATIONS. This isn't due until week 4, but I thought I would give you a chance to get started on it. 

If you have any questions about anything, don't forget that you can use the WEEKLY FORUM area to ask questions.

(2) EXAMPLE of MR=MC

How about if we try an EXAMPLE of MR=MC for a perfectly competitive firm?

(TCO C) Answer the next question on the basis of the following information for a purely competitive firm:

Output------------Price------------Total Cost

----0--------------$100---------------$100

----1--------------$100---------------$260

----2--------------$100---------------$290

----3--------------$100---------------$350

----4--------------$100---------------$480

----5--------------$100---------------$700

How many units would the above profit-maximizing firm produce?

(Don't spend your life on formatting. It can get ugly trying to format columns of numbers in this system).  This especially holds true during the quiz.  Don't waste a lot of time formatting your answers - this is not to say "be sloppy".  But don't spend a lot of your time worrying about formatting -...