Table 1 REVENUE RELATIONS

A B C D
Total
Revenue(TR) Marginal
Quantity Sold(Q) Price(P) (A*B) Revenue(MR)
0 Php24.00 Php0.00 Php0.00
1 Php22.50 Php22.50 Php22.50
2 Php21.00 Php42.00 Php19.50
3 Php19.50 Php58.50 Php16.50
4 Php18.00 Php72.00 Php13.50
5 Php16.50 Php82.50 Php10.50
6 Php15.00 Php90.00 Php7.50
7 Php13.50 Php94.50 Php4.50
8 Php12.00 Php96.00 Php1.50
9 Php10.50 Php94.50 -Php1.50
10 Php9.00 Php90.00 -Php4.50

TR= f(Q)
TR= P x Q
1. What is the demand curve? P=24-1.5(Q), where 24 is the intercept and 1.5 is the slope coeffecient

2. Recompute Total Revenue(TR) using the linear demand curve for 5 quantity sold
TR= Php24-Php1.5(5) x 5
TR= (Php24-Php7.5) x 5
TR= Php82.50

3. What is the marginal revenue over the range from 5-6? Php7.50

4. At what quantity is the revenue maximization? 8 units

MR=0
Php24-Php3Q=0
Php3Q=Php24
Q=8

COST RELATIONS

Lumber and Forest Industry Supply and Demand RelationshipsV

A B C D
Quantity Quantity
Price Demanded Supplied Surplus(Shortgae)
$1.00 60,000 0 (60,000)
1.10 58,000 2,000 (56,000)
 1.20 56,000 4,000 (52,000)
1.30 54,000 6,000 (48,000)
1.40 52,000 8,000 (44,000)
1.50 50,000 10,000 (40,000)
1.60 48,000 12,000 (36,000)
1.70 46,000 14,000 (32,000)
1.80 44,000 16,000 (28,000)
1.90 42,000 18,000 (24,000)
2.00 40,000 20,000 (20,000)

Market Demand
Domestic
Price Demand Foreign Demand Market Demand Total Revenue
$100.00 0 0 Chart
0 Title 0.00
95.00 5,000 0 5,000 475,000.00
90.00 10,000 10,000
60,000 20,000 1,800,000.00
85.00 15,000 12,000
50,000 27,000 2,295,000.00
80.00 20,000 14,000 34,000 2,720,000.00
40,000
75.00 25,000 16,000 41,000 3,075,000.00
30,000
70.00 30,000 18,000 48,000 3,360,000.00
65.00 35,000 20,000
20,000 55,000 3,575,000.00
60.00 40,000 22,000
10,000 62,000 3,720,000.00
55.00 45,000 24,000 69,000 3,795,000.00
0
50.00 50,000 26,000
1 2 3 76,000
4 5 6 3,800,000.00
7 8 9 10 11

Price Domestic Demand

Price 100.00 95.00 90.00 85.00

Domestic Demand - 5,000 10,000 15,000
Foreign Demand - - 10,000 12,000
Market Demand - 5,000 20,000 27,000

80,000
70,000
60,000
50,000
40,000
30,000
20,000
10,000
-
1 2 3 4 5 6

Domestic Demand Foreign Dem

e coeffecient
 Total Cost Total Profit
1,200,000.00 (1,200,000.00)
1,320,000.00 (845,000.00)
1,680,000.00 120,000.00
1,848,000.00 447,000.00
2,016,000.00 704,000.00
2,184,000.00 891,000.00
2,352,000.00 1,008,000.00
2,520,000.00 1,055,000.00
2,688,000.00 1,032,000.00
2,856,000.00 939,000.00
7 8 9 3,024,000.00
10 11 776,000.00

mand

80.00 75.00 70.00 65.00 60.00 55.00 50.00

 20,000 25,000 30,000 35,000 40,000 45,000 50,000
14,000 16,000 18,000 20,000 22,000 24,000 26,000
34,000 41,000 48,000 55,000 62,000 69,000 76,000

2 3 4 5 6 7 8 9 10 11

tic Demand Foreign Demand Market Demand