numbers given in the chart below!

hint: when entering information in a cell that you do not want to

be recognized as a formula enter it proceeded by an: '
Create an embedded graph using Excel. Go to the Insert tab, click on Scatter (if the lines look funny
click on Chart Tools then Design then Switch Rows/Columns) (hint: do not use the rows that have a
dash in them) if you need access to Excel go to: https://allaccess.slcc.edu/vpn/index.html
Marginal Analysis
Go to Chart Tools then Layout then title your graph and your x and y axis
Highlight the optimal row on the chart and go to the Home
Microeonomics - Econtab and
2010 under Font you can pick your
Pointcolor
Distribution
to highlight that row 24 cells ( 0.5 for correct number and 0.5 for co
Go to Insert then shapes then line to create your line on the graph at the optimal point, then go1 to Create an embedded graph
Format then Shape Outline to change the color to red and to change the width of the line 6 lines on the graph
Go to Q B(Q) then Text
Insert, then Shapes, C(Q) N(Q)
Box to create MB(Q)
the area to type MC(Q)
in your 7 reasons MNB(Q)
you know 3Title
that you
the graph and label the x-axis and the y-a
are at the
0 optimal point
0 0 0 -- -- 1Highlight
-- optimal point on chart
Save the spread sheet as "your name - Marginal Analysis" 1 Put a red line on graph at the optimal point
1 a hard copy200
Print off and bring it to 30 170that everything
class (make sure 200 fits on 1 page
30 and that I 1can
170
Create
read a text box for the 7 reasons
the chart,
2 the graph and
300 your 7 reasons)
70 100 40 7 60
State the 7 reasons you know you are at an op
230
Submit the finished project in the drop box in Connect. 1 Submit a final version in the drop box
3 390 120
If you want to see your formulas hold the control key while 90 the ~ key 50
270 you press 40 in a hard copy such that the chart and the
(to the left of1Hand
the
number4 1) and to revert
450 to the standard
180 screen repeat the process. 60
270 60 1Put
0 your name at the top of the assigment
3Just for trying
5 480 255 225 30 75 -45
50 total points
7 6optimal ways: 500 330 170 20 75 -55
1. Net Benefit line is at its peak
2. Net Benefit line to be at its largest number on chart
3. Marginal Benefit and Marginal Cost Lines intersect
4. Marginal Benefit and Marginal Cost numbers are equal on chart
5. Marginal Net Benefit line to cross x-axis
6. Marginal Net Benefit is equal to 0 on chart
7. Greatest vertical distance between total benefit and total cost lines 600
500
400

Money
300
200
100
0
0 1
-100

B(Q)
tribution
0.5 for correct number and 0.5 for correct formula)
an embedded graph
the graph
graph and label the x-axis and the y-axis
ht optimal point on chart
d line on graph at the optimal point
a text box for the 7 reasons
e 7 reasons you know you are at an optimal place
a final version in the drop box
a hard copy such that the chart and the graph are both visable on one page
name at the top of the assigment
trying
oints

Marginal Analysis: Peter Nguyen

600
500
400
Money

300
200
100
0
0 1 2 3 4 5 6 7
-100

Quantity

B(Q) C(Q) N(Q) MB(Q) MC(Q) MNB(Q)

Output Price TR MR TC ATC MC Monopoly Profit
0 20 0 -- 20 -- -- -20
1 18 18 $18 21 $21.0 $1 -3
2 16 32 $32 24 $12.0 $3 8
3 14 25 36 47 58 69 12
4 12 48 $48 40 $10.0 -$7 8
5 10 50 $50 55 $11.0 $15 -5

First Graph - Monopoly

25
60

50
20
40
Price/Cost/Revenue/Profit

Col umn B

Price/Cost/Rvenue/Profit
30 Col umn C
15
20 Col umn D
10 Col umn E
10
0 Col umn F
0 1 2 3 4 5 6
-10 Col umn G 5
-20 Col umn H

-30 0
0 1
Quantity

The numbers that are used in the marginal analysis and monopoly sheets are very different Monopoly Profit:
from each other. There is very little so see from both comparisons, so there is no need. 1. Marginal Revenue = Margi
Although hen looking at it, the concepts utilized in both assignments are the same. The units).
marginal analysis and monopoly assignments show that any determination of monopoly A firm that cannot sell a porti
profits uses the same set of information as that used in marginal analyses. Something to keep nearly equal to MR, and pote
in mind that's very important is the optimal point. The optimal point in a marginal analysis is 2. Go up to the Price/Deman
the point at which marginal benefits equal marginal costs. The results equate to a point at 3. Go down to ATC, then aver
which total benefits are largest when compared to total costs. This is the same point in the 4. Find the area between ATC
monopoly chart and monopoly graph 1 where marginal revenue (same thing as marginal
benefits) equal marginal costs, and total revenues (same thing as total benefits) are largest
compared to total costs. Determining the optimal point of production in a marginal analysis
is the first step in determining the monopoly profits for a firm.
 Second Graph - Monopoly
25

20
Price/Cost/Rvenue/Profit

15 Col umn B
Col umn D
Col umn F
10 Col umn G

0
0 1 2 3 4 5 6

Quantity

Monopoly Profit:
1. Marginal Revenue = Marginal Cost. Quantity that the company will sell is (MC=MR between 3 and 4
units).
A firm that cannot sell a portion of a unit, so must choose a whole number of units at which MC is
nearly equal to MR, and potential profits are maximized. In this example, that is 3 units.)
2. Go up to the Price/Demand line, the price at each unit will sell ($14)
3. Go down to ATC, then average cost to produce each unit for the firm ($10)
4. Find the area between ATC, Price/Demand, and vertical axis; excess/monopoly profits ($12)