Grader - Instructions Excel 2016 Project Chapter 10 Problem 9-1 (V2) Project Description: In this problem, you will calculate the prices and marginal revenues for the firms in two cities, determine the profit-maximizing outputs and prices, and the price elasticity of demand in each city for each price-quantity combination. Steps to Perform: Points Possible Step Instructions 1 Use a cell reference or a single formula where appropriate in order to receive full credit. Do not copy and paste values or type values, as you will not receive full credit for your answers. For the purpose of grading the project, you are required to perform the following tasks: 0 Start Excel. 2 In cell E18, by using relative and absolute cell references, calculate the price for City 1 for the output in cell C18. Copy the formula from cell E18 down the column to cell E30. 1 3 In cell F18, by using relative and absolute cell references, calculate the price for City 2 for the output in cell D18. Copy the formula from cell F18 down the column to cell F30. 1 4 In cell G18, by using relative and absolute cell references, calculate the marginal revenue for City 1 for the output in cell C18. Copy the formula from cell G18 down the column to cell G30. 1 5 In cell H18, by using relative and absolute cell references, calculate the marginal revenue for City 2 for the output in cell D18. Copy the formula from cell H18 down the column to cell H30. 1 6 In cell H32, by using a cell reference, enter the profit-maximizing output for City 1. 1 7 In cell K32, by using a cell reference, enter the price that maximizes the profit for City 1. 1 8 In cell H33, by using a cell reference, enter the profit-maximizing output for City 2. 1 9 In cell K33, by using a cell reference, enter the price that maximizes the profit for City 2. 1 10 In cell G35, by using cell references, calculate the maximum profit for both the firms. 1 11 In cell J19, by using relative and absolute cell references, calculate the price elasticity of demand for City 1 for the output in cell C19. Copy the formula from cell J19 down the column to cell J30. 1 12 In cell K19, by using relative and absolute cell references, calculate the price elasticity of demand for City 2 for the output in cell C19. Copy the formula from cell K19 down the column to cell K30. 1 13 In cell F37, by using cell references, calculate the value of p2/p1 using the prices that maximize the total profit for the firms. 1 14 In cell D38, by using cell references, calculate the value of (1+1/e1)/(1+1/e2). 1 15 In cells H37-I37, determine whether the value of p2/p1 is greater, equal to, or less than the value (1+1/e1)/(1+1/e2) 1 16 Save the workbook. Close the workbook and then exit Excel. Submit the workbook as directed. 0 Created On: 07/05/2019 1 Chapter 10 Problem 9-1 (V2) Grader - Instructions Excel 2016 Project Total Points Created On: 07/05/2019 2 14 Chapter 10 Problem 9-1 (V2) Problem 9-1 Use a cell reference or a single formula where appropriate in order to receive full cre values or type values, as you will not receive full credit for your answers. The Jam Factory makes boutique jams that it sells in specialty stores in two different cities demand function is p 1 = 12 - 0.5Q 1 and the marginal revenue function is MR 1 = 12 - Q 1. I demand and marginal revenue functions are p 2 = 20 - Q2 and MR 2 = 20 - 2Q 2. The firm’s + 6Q , where Q = Q 1 + Q 2. Thus, the firm’s marginal cost of production is 6 per unit. p1 MR1 p2 MR2 C(Q) Q = = = = = = 12 12 20 20 10 Q1 + + 0.5 Q1 Q1 Q2 2 Q2 6Q Q2 a) Solve for the price and marginal revenue in each city at the corresponding quantit Jam Factory price discriminates by charging a different price in each city. Find th quantities and prices. Verify that the marginal revenues are the same in each city a quantities. Determine the firm’s profit. b) Calculate the price elasticity of demand in each city for each price-quantity comb results are consistent with Equation 10.5: (Hint: The price elasticity of demand for City 1 is ε 1 = -2p 1/Q 1 and for City 2 is ε ε1 ε2 = = Q1 0 1 2 3 4 Q2 0 1 2 3 4 -2 p1 / Q1 -1 p2 / Q2 a) p1 p2 MR1 MR2 MC 6 6 6 6 6 5 6 7 8 9 10 11 12 5 6 7 8 9 10 11 12 6 6 6 6 6 6 6 6 a) The firm's profit-maximizing output for City 1 is The firm's profit-maximizing output for City 2 is The maximum profit for the firm is b) The value of p 2/p 1 is which is . when the price is when the price is . and it is der to receive full credit. Do not copy and paste answers. in two different cities. In City 1, the daily inverse on is MR 1 = 12 - Q 1. In City 2, the inverse 20 - 2Q 2. The firm’s cost function is C (Q ) = 10 tion is 6 per unit. corresponding quantities Q = 0, 1, 2, …12. The e in each city. Find the profit-maximizing the same in each city at the profit-maximizing h price-quantity combination. Verify that your /Q 1 and for City 2 is ε 2 = -p 2/Q 2. ) b) ε1 ε2 when the price is when the price is . . the value of (1+1/e 1)/(1+1/e 2) Project Description: In this problem, you will calculate the prices and marginal revenues for the firms in two cities, deter profit-maximizing outputs and prices, and the price elasticity of demand in each city for each pricecombination. Steps to Perform: Step 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Project Description: In this problem, you will calculate the prices and marginal revenues for the firms in two cities, determine the profit-maximizing outputs and prices, and the price elasticity of demand in each city for each price-quantity combination. Steps to Perform: Instructions Use a cell reference or a single formula where appropriate in order to receive full credit. Do not copy and paste values or type values, as you will not receive full credit for your answers. For the purpose of grading the project, you are required to perform the following tasks: In cell E18, by using relative and absolute cell references, calculate the price for City 1 for the output in cell C18. Copy the formula from cell E18 down the column to cell E30. In cell F18, by using relative and absolute cell references, calculate the price for City 2 for the output in cell D18. Copy the formula from cell F18 down the column to cell F30. In cell G18, by using relative and absolute cell references, calculate the marginal revenue for City 1 for the output in cell C18. Copy the formula from cell G18 down the column to cellcell G30. In H18, by using relative and absolute cell references, calculate the marginal revenue for City 2 for the output in cell D18. Copy the formula from cell H18 down the column to cell H30. In cell H32, by using a cell reference, enter the profit-maximizing output for City 1. In cell K32, by using a cell reference, enter the price that maximizes the profit for City 1. In cell H33, by using a cell reference, enter the profit-maximizing output for City 2. In cell K33, by using a cell reference, enter the price that maximizes the profit for City 2. In cell G35, by using cell references, calculate the maximum profit for both the firms. In cell J19, by using relative and absolute cell references, calculate the price elasticity of demand for City 1 for the output in cell C19. Copy the formula from cell J19 down the column to cell In cell K19, byJ30. using relative and absolute cell references, calculate the price elasticity of demand for City 2 for the output in cell C19. Copy the formula from cell K19 down the column to cell In cell F37, by K30. using cell references, calculate the value of p2/p1 using the prices that maximize the total profit for the firms. In cell D38, by using cell references, calculate the value of (1+1/e 1)/(1+1/e 2). In cells H37-I37, determine whether the value of p2/p1 is greater, equal to, or less than the valuethe (1+1/e Save workbook. Close the workbook and then exit Excel. Submit the workbook as 1)/(1+1/e 2) directed. ies, determine the ch price-quantity Points Possible 0 1 1 1 1 1 1 1 1 1 1 1 1 1 1 0 Grader - Instructions Excel 2016 Project Chapter 10 Problem 9-3 Project Description: In this problem, you will investigate the optimal profit for the restaurant in daytime and in the evening hours. Steps to Perform: Points Possible Step Instructions 1 Use a cell reference or a single formula where appropriate in order to receive full credit. Do not copy and paste values or type values, as you will not receive full credit for your answers. For the purpose of grading the project, you are required to perform the following tasks: 0 Start Excel. 2 In cell D15, by using relative and absolute cell references, calculate the price in the evening hours for the output in cell C15. Copy the formula from cell D15 down the column to cell D24. 1 3 In cell E15, by using relative and absolute cell references, calculate the marginal revenue in the evening hours for the output in cell C15. Copy the formula from cell E15 down the column to cell E24. 1 4 In cell G15, by using relative and absolute cell references, calculate the price during the day for the output in cell C15. Copy the formula from cell G15 down the column to cell G24. 1 5 In cell H15, by using relative and absolute cell references, calculate the marginal revenue during the day for the output in cell C15. Copy the formula from cell H15 down the column to cell H24. 1 6 In cell I15, by using a cell reference, enter the marginal cost of producing a dessert. Copy the formula from cell I15 down the column to cell I24. 1 7 In cell J15, by using a cell reference, enter the marginal capacity cost. Copy the formula from cell J15 down the column to cell J24. 1 8 In cell K15, by using cell references, calculate the total marginal cost in the daytime. Copy the formula from cell K15 down the column to cell K24. 1 9 In cell G28, by using a cell reference, enter the optimal price in the daytime. 1 10 In cell K28, by using a cell reference, enter the output associated with the optimal price in the daytime. 1 11 In cell E29, by using a cell reference, enter the optimal price in the evening hours. 1 12 In cell I29, by using a cell reference, enter the output associated with the optimal price in the evening hours. 1 13 In cell F31, by using cell references, calculate the optimal daily profit. 1 14 Save the workbook. Close the workbook and then exit Excel. Submit the workbook as directed. 0 Total Points Created On: 07/05/2019 1 12 Chapter 10 Problem 9-3 Problem 9-3 Use a cell reference or a single formula where appropriate in order to receive full cre paste values or type values, as you will not receive full credit for your answers. A restaurant faces very high demand for its signature mousse desserts in the evening but is Its manager estimates that (inverse) demand curves are p e = 20 - Q e in the evening and p d where e and d denote evening and daytime. The marginal cost of producing its dessert, M the restaurant can bring in additional tables and convert its storage space to seating to incr Creating enough extra capacity to provide one more dessert in the evening or the day costs restaurant’s marginal capacity cost, MC 2. pe pd MC1 MC2 MRe MRd = = = = = = 20 11 3 5 20 11 - Qe Qd - 2 Qe 2 Qd a) Calculate the prices, marginal revenues, and marginal costs in the evening and da costs for Q = 1, 2, …, 10. Qe 1 2 3 4 5 6 7 8 9 10 Pe MRe Qd 1 2 3 4 5 6 7 8 9 10 Pd MRd MC1 b) Determine the optimal prices for the dessert that the restaurant should charge duri during the day, the associated quantities sold, and the total daily profit. The optimal price in daytime is when the output is in the evening is when the output is The optimal profit is . n order to receive full credit. Do not copy and t for your answers. esserts in the evening but is less busy during the day. - Q e in the evening and p d = 11 - Q d during the day, of producing its dessert, MC 1, is $3. Any morning, age space to seating to increase capacity for that day. he evening or the day costs $5, which is the costs in the evening and daytime, and total marginal MC2 MCT staurant should charge during the evening hours and otal daily profit. n the output is . . The optimal price Project Description: In this problem, you will investigate the optimal profit for the restaurant in daytime and in the eveni Steps to Perform: Step 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Project Description: In this problem, you will investigate the optimal profit for the restaurant in daytime and in the evening hours. Steps to Perform: Instructions Use a cell reference or a single formula where appropriate in order to receive full credit. Do not copy and paste values or type values, as you will not receive full credit for your answers. For the purpose of grading the project, you are required to perform the following tasks: In cell D15, by using relative and absolute cell references, calculate the price in the evening hours for the output in cell C15. Copy the formula from cell D15 down the column to cell In cell E15, byD24. using relative and absolute cell references, calculate the marginal revenue in the evening hours for the output in cell C15. Copy the formula from cell E15 down the column to cell In cell G15, byE24. using relative and absolute cell references, calculate the price during the day for the output in cell C15. Copy the formula from cell G15 down the column to cell G24. In cell H15, by using relative and absolute cell references, calculate the marginal revenue during the day for the output in cell C15. Copy the formula from cell H15 down the column to cell H24. a cell reference, enter the marginal cost of producing a dessert. Copy In cell I15, by using thecell formula from cellaI15 the column to cell I24. capacity cost. Copy the formula In J15, by using celldown reference, enter the marginal from J15bydown column to cellcalculate J24. In cellcell K15, usingthe cell references, the total marginal cost in the daytime. Copy the formula from cell K15 down the column to cell K24. In cell G28, by using a cell reference, enter the optimal price in the daytime. In cell K28, by using a cell reference, enter the output associated with the optimal price in the daytime. In cell E29, by using a cell reference, enter the optimal price in the evening hours. In cell I29, by using a cell reference, enter the output associated with the optimal price in the evening hours. In cell F31, by using cell references, calculate the optimal daily profit. Save the workbook. Close the workbook and then exit Excel. Submit the workbook as directed. the evening hours. Points Possible 0 1 1 1 1 1 1 1 1 1 1 1 1 0
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