Economics
Walden University Managerial Economics Calculations Paper and Excel Sheet

Walden University

### Question Description

I need an explanation for this Economics question to help me study.

Assignment is attached and please complete by Sunday around this same time please. If you have any questions please reach out to me. Everything is pretty much the same as always.

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Attached below is my complete answer for the unit 6 assignment.

Running head: ANSWER TO UNIT 6 ECONOMICS ASSIGNMENT

Answer to Unit 6 Economics Assignment
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Running head: ANSWER TO UNIT 6 ECONOMICS ASSIGNMENT

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Answer to Unit 6 Economics Assignment
Answer to Question 1
The manager of the EI Dorado Star should charge at the price when the marginal
cost (MC) is approximately equal to the marginal revenue (MR), or after that the
marginal cost gets larger than the marginal revenue (Thomas & Maurice, 2013). From the
calculation in Excel spreadsheet, we can observe that when the quantity is 5,000 units,
the marginal revenue of \$0.20 is still higher than the marginal cost of \$0.18. As the
quantity increases to 6,000 units, its corresponding marginal revenue of \$0.18 becomes
smaller than the marginal cost of \$0.19. Hence, the price charged by the manager of the
EI Dorado Star should be the marginal cost of \$1.19 when the quantity of newspaper sold
is 5,000 units, as the desired result.
Answer to Question 2
The greatest possible amount of total revenue (TR) cannot be given using the
quantity level and the price answered in the previous question. In fact, the highest total
revenue of \$6,225 takes place when the quantity is 7,000 units whereas the quantity level
as determined in the previous part is only 5,000 units. Moreover, this is what we have
expected because the total revenue can only be maximized when we obtain zero marginal
revenue, as the profit is highest when the difference between the total revenue and the
total cost is maximized.
Answer to Question 3
The total profit can be calculated as column G in the Excel file by subtracting the
total cost (TC) in column C from the total revenue (TR) in column B. In a respective
manner, the profit margin as column H in the Excel spreadsheet can be computed by

Running head: ANSWER TO UNIT 6 ECONOMICS ASSIGNMENT

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