ECON 103

2/1/00

Class Exercise for Chapter 2 (Basic Economic Relations)

Given: P = 60 - .005Q and TC = 100,000 + 5Q +.0005Q2 for movie tickets.

 

  1. Using Excel and starting at a quantity of 0, increment quantity by 1,000 until P = 0. Enter quantity in the column A and price in the column B.
  2. Enter TR in column C.
  3. Enter MR1 in column D. (MR = D TR / D Q) Start this is the first row of your spreadsheet where Q = 0.
  4. Enter MR2 in column E. Use the same formula for MR1, but start in the 2nd row of your spreadsheet.
  5. Enter MR3, which is the average of columns D & E, in column F. (This produces MR at midpoints.) Start in the 2nd row of your spreadsheet.
  6. Calculate AR in column G.
  7. Calculate TC in column H.
  8. Calculate MC1 in column I. (MC = D TC / D Q) Start this is the first row of your spreadsheet where Q = 0.
  9. Calculate MC2 in column J. Use the same formula for MC1, but start in the 2nd row of your spreadsheet.
  10. Calculate MC3 in column K. (This produces MC at midpoints.)
  11. Calculate AC in column L.
  12. Calculate profits in column M.
  13. Graph the demand curve. Use "xy scatter."
  14. Shade the row where profits are maximized yellow.
  15. Add a title (Class Exercise for Chapter 2) in the first row. Add column headings in the 2nd row. Add the source (formula, given, etc.) in the 3rd row. Add the letter of the column in the 4th row.
  16. Align your headings.
  17. Use print preview to make some final adjustments. Set it for landscape. Center it horizontally & vertically. Widen the margins & adjust the columns if necessary to get all of it on one page. Add a header & a footer.

18.If you have any errors, such as those caused by trying to divide by zero, correct them. Note that you will lose one row on each end when you calculate MR1 & MR2.

  1. Use print preview on the worksheet & setup to add your file name as a header & your name as a footer.
  2. Use print preview & setup on the graph only to add your file name as a header & your name as a footer.
  3. If you have not already, narrow your columns & use alignment on your headings & your title to center across section, center vertically & wrap text. Note also that you can change the orientation of the text for headings. (Note that you can quickly get to format cells & alignment with a right mouse click.)
  4. If you have not already done so, label each axis & add a title to your graph. Note that you can edit a graph by selecting it & clicking on the graph icon.
  5. Add borders. I will show you how in class. (Use the right mouse click.)
  6. Format your number. Use currency, no places to the right of the decimal, and no symbol.
  7. Copy the number you need to do a graph showing both AR (demand) and MR curves to the second worksheet. Note that you will need to use paste special in order to do this.
  8. Copy the number you need to do a graph showing TC, MC & AC curves to the third worksheet. Again, you will need to use paste special in order to do this.
  9. Rename each worksheet; use a name that describes what each worksheet shows.