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Page 1: Further Optimization of Economic Functionsmizu.lecture.ub.ac.id/files/2016/06/14.-Further-Optimization-of.pdfObjectives Show that, at the point of maximum profit, marginal revenue
Page 2: Further Optimization of Economic Functionsmizu.lecture.ub.ac.id/files/2016/06/14.-Further-Optimization-of.pdfObjectives Show that, at the point of maximum profit, marginal revenue

Objectives Show that, at the point of maximum profit, marginal

revenue equals marginal cost. Show that, at the point of maximum profit, the slope of

the marginal revenue curve is less than that of marginalcost. Maximize profits of a firm with and without price

discrimination in different markets. Show that, at the point of maximum average product of

labour, average product of labour equals marginalproduct of labour.

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Page 3: Further Optimization of Economic Functionsmizu.lecture.ub.ac.id/files/2016/06/14.-Further-Optimization-of.pdfObjectives Show that, at the point of maximum profit, marginal revenue

The previous section demonstrated how mathematics can be usedto optimize particular economic functions. Those examples

suggested two important results:

The previous section demonstrated how mathematics can be usedto optimize particular economic functions. Those examples

suggested two important results:

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Page 4: Further Optimization of Economic Functionsmizu.lecture.ub.ac.id/files/2016/06/14.-Further-Optimization-of.pdfObjectives Show that, at the point of maximum profit, marginal revenue

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Page 5: Further Optimization of Economic Functionsmizu.lecture.ub.ac.id/files/2016/06/14.-Further-Optimization-of.pdfObjectives Show that, at the point of maximum profit, marginal revenue

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Page 6: Further Optimization of Economic Functionsmizu.lecture.ub.ac.id/files/2016/06/14.-Further-Optimization-of.pdfObjectives Show that, at the point of maximum profit, marginal revenue

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Page 7: Further Optimization of Economic Functionsmizu.lecture.ub.ac.id/files/2016/06/14.-Further-Optimization-of.pdfObjectives Show that, at the point of maximum profit, marginal revenue

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Page 8: Further Optimization of Economic Functionsmizu.lecture.ub.ac.id/files/2016/06/14.-Further-Optimization-of.pdfObjectives Show that, at the point of maximum profit, marginal revenue

Example 1

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Page 9: Further Optimization of Economic Functionsmizu.lecture.ub.ac.id/files/2016/06/14.-Further-Optimization-of.pdfObjectives Show that, at the point of maximum profit, marginal revenue

Solution

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Page 10: Further Optimization of Economic Functionsmizu.lecture.ub.ac.id/files/2016/06/14.-Further-Optimization-of.pdfObjectives Show that, at the point of maximum profit, marginal revenue

Hence

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Page 11: Further Optimization of Economic Functionsmizu.lecture.ub.ac.id/files/2016/06/14.-Further-Optimization-of.pdfObjectives Show that, at the point of maximum profit, marginal revenue

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Page 12: Further Optimization of Economic Functionsmizu.lecture.ub.ac.id/files/2016/06/14.-Further-Optimization-of.pdfObjectives Show that, at the point of maximum profit, marginal revenue

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Page 13: Further Optimization of Economic Functionsmizu.lecture.ub.ac.id/files/2016/06/14.-Further-Optimization-of.pdfObjectives Show that, at the point of maximum profit, marginal revenue

Ada pertanyaan?

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Page 14: Further Optimization of Economic Functionsmizu.lecture.ub.ac.id/files/2016/06/14.-Further-Optimization-of.pdfObjectives Show that, at the point of maximum profit, marginal revenue

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Page 15: Further Optimization of Economic Functionsmizu.lecture.ub.ac.id/files/2016/06/14.-Further-Optimization-of.pdfObjectives Show that, at the point of maximum profit, marginal revenue

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Page 16: Further Optimization of Economic Functionsmizu.lecture.ub.ac.id/files/2016/06/14.-Further-Optimization-of.pdfObjectives Show that, at the point of maximum profit, marginal revenue

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Page 17: Further Optimization of Economic Functionsmizu.lecture.ub.ac.id/files/2016/06/14.-Further-Optimization-of.pdfObjectives Show that, at the point of maximum profit, marginal revenue

Evaluate the profit under eachpolicy

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Page 18: Further Optimization of Economic Functionsmizu.lecture.ub.ac.id/files/2016/06/14.-Further-Optimization-of.pdfObjectives Show that, at the point of maximum profit, marginal revenue

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Page 19: Further Optimization of Economic Functionsmizu.lecture.ub.ac.id/files/2016/06/14.-Further-Optimization-of.pdfObjectives Show that, at the point of maximum profit, marginal revenue

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