Managerial Economics
djprse
DavidPD7spreadsheet030220.xlsxSheet1
| Values in Millions | imperfect market structure | ||||||||||||
| PRICE | QUANTITY | TOTAL REVENUE | MARGINAL REVENUE | TOTAL COST | TOTAL FIXED COST | TOTAL VARIABLE COST | AVERAGE TOTAL COST | AVERAGE FIXED COST | AVERAGE VARIABLE COST | MARGINAL COST | MARGINAL PROFIT | TOTAL PROFIT | TOTAL PROFIT (15 YEARS) |
| 89.00 | 0 | $1.72 | $1.72 | $0.00 | |||||||||
| 82.70 | 1 | $82.70 | $82.70 | $29.19 | $1.72 | $27.47 | $29.19 | $1.72 | $27.47 | $29.92 | $52.78 | 53.51 | Ksh 802.70 |
| 76.40 | 2 | $152.80 | $70.10 | $59.11 | $1.72 | $57.39 | $29.55 | $0.86 | $28.69 | $30.66 | $39.45 | 93.69 | Ksh 1,405.38 |
| 70.10 | 3 | $210.30 | $57.50 | $89.76 | $1.72 | $88.04 | $29.92 | $0.57 | $29.35 | $31.39 | $26.11 | 120.54 | Ksh 1,808.06 |
| 63.80 | 4 | $255.20 | $44.90 | $121.15 | $1.72 | $119.43 | $30.29 | $0.43 | $29.86 | $32.12 | $12.78 | 134.05 | Ksh 2,010.72 |
| 57.50 | 5 | $287.50 | $32.30 | $153.28 | $1.72 | $151.56 | $30.66 | $0.34 | $30.31 | $32.86 | -$0.56 | 134.23 | Ksh 2,013.38 |
| 51.20 | 6 | $307.20 | $19.70 | $186.13 | $1.72 | $184.41 | $31.02 | $0.29 | $30.74 | $33.59 | -$13.89 | 121.07 | Ksh 1,816.02 |
| 44.90 | 7 | $314.30 | $7.10 | $219.72 | $1.72 | $218.00 | $31.39 | $0.25 | $31.14 | $34.33 | -$27.23 | 94.58 | Ksh 1,418.66 |
| 38.60 | 8 | $308.80 | -$5.50 | $254.05 | $1.72 | $252.33 | $31.76 | $0.22 | $31.54 | $35.06 | -$40.56 | 54.75 | Ksh 821.28 |
| 32.30 | 9 | $290.70 | -$18.10 | $289.11 | $1.72 | $287.39 | $32.12 | $0.19 | $31.93 | $35.79 | -$53.89 | 1.59 | Ksh 23.90 |
| 26.00 | 10 | $260.00 | -$30.70 | $324.90 | $1.72 | $323.18 | $32.49 | $0.17 | $32.32 | $32.49 | -$63.19 | -64.90 | -Ksh 973.50 |
| Expected Profit | Expected Profit for Alternative Investment | CROSS-PRICE ELASTICITY | |||||||||||
| $ 1,533.38 | $1,510.00 | SUBSTITUTE GOOD | |||||||||||
| Profit Variance | Variance for Alternative Investment | P | % Increase | A 15% increase in price of oil triggered a 20% increase in the alternate energy source. The alternate energys source is a substitute good. The relationship between crude oil and the substitute good is strong as we can see by the equation; The relationship is represented by a postive number over 1 which indicates strong elasticity is present. | |||||||||
| $ 1,305,600.00 | $32,400.00 | Ksh 50.00 | 15 | ||||||||||
| Quantified Risk | Quantified Risk of Alternative Investment | Ksh 57.50 | 20 | 1.33 | |||||||||
| $1,142.63 | $180.00 | ||||||||||||
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