EXCEL, economics

Sheet1

Example with two different demand schedules in two markets, A and B, with MC=ATC=6
		Market A				ΔTRA/ΔQA=
		MID-Q	QA	PA	TRA	MRA	MC=ATC
			0	48	0	-
		0.5	1	42	42	42	6
		1.5	2	36	72	30	6
		2.5	3	30	90	18	6
		3.5	4	24	96	6	6
		4.5	5	18	90	-6	6
		5.5	6	12	72	-18	6
		6.5	7	6	42	-30	6
		7.5	8	0	0	-42	6
			Profit from market A		73.5
		Market B				ΔTRB/ΔQB=
		MID-Q	QB	PB	TRB	MRB	MC=ATC
			0	16	0	-
		0.5	1	14	14	14	6
		1.5	2	12	24	10	6
		2.5	3	10	30	6	6
		3.5	4	8	32	2	6
		4.5	5	6	30	-2	6
		5.5	6	4	24	-6	6
		6.5	7	2	14	-10	6
		7.5	8	0	0	-14	6
					Profit from market A		73.5
					Profit from market B		12.5
					Total Profit from A and B		86
Example with two different linear demand formulas in two markets, A and B, with MC=ATC=12
					Demand-A			MR-A
		DA: PA=48-6QA			PA	QA		P	Q
		MRA: MRA=48-12QA			48	0		48	0
					0	8		0	4
					Demand-B			MR-B
		DB: PB=16-2QB			P	Q		P	Q
		MR2	MRB: MRB=16-4QB		16	0		16	0
					0	8		0	4
										MC=ATC=12
										Set MRA=MC:
										48-12QA=12
										Solve for QA:
										QA=(48-12)/12=3
										Set MRB=MC:
										16-4QB=12
										Solve for QB:
										Q=(16-12)/4=1
	Total profit = Profit from A + Profit from B = 54+2 = 56

Demand 0 1 2 3 4 5 6 7 8 48 42 36 30 24 18 12 6 0 MR 0.5 1.5 2.5 3.5 4.5 5.5 6.5 7.5 42 30 18 6 -6 -18 -30 -42 MC 0 8 6 6 0 3.5 3.5 27 27 0

Demand 0 1 2 3 4 5 6 7 8 16 14 12 10 8 6 4 2 0 MR 0.5 1.5 2.5 3.5 4.5 5.5 6.5 7.5 14 10 6 2 -2 -6 -10 -14 MC 0 8 6 6 profit max P & Q 0 2.5 2.5 11 11 0

D1 0 8 48 0 MR1 0 4 48 0 MC=ATC=12 0 8 12 12 Max profit P & Q 0 3 3 30 30 0

D2 0 8 16 0 MR1 0 4 16 0 MC=ATC=12 0 8 12 12 max profit P & Q 0 1 1 14 14 0

Market A

Market B

MC=12