1. Chapter 6: Introduction to Differentiation and Applications
Worked Example 6.25 Figure 6.27
Profit Maximization for perfect competition: Slide 2
Worked Example 6.26 Figure 6.28
Profit Maximization for a monopolist: Slide 3
Worked Example 6.31, Figure 6.37: Total Cost, Fixed Cost, Marginal Cost and Variable Cost: Slide 3
Worked Example 6.32: Figure 6.38 TC, TVC, MC, AVC, AC: Slide 4
Worked Example 6.32: Figure 6.38 (b) Points of intersection for MC, AC, AVC: Slide 5
Worked Example 6.29/6.30: Figure 6.36 Short run Production function and MPL, and APL: Slide 6
Worked Example 6.42, Figure 6.41: The relationship between TR, MR and elasticity of demand: Slide 7

2. Profit Maximization for perfect competition Worked Example 6.25
6000 TC
(a)
5000
4000 TR
3000
2000
1000 Q 5 10 15 20 25 30
-1000 Q
= 2 Q
= 18 p
-2000
-3000
700
(b)
600
Profit maximization MC
500
400
300
Profit minimization
200 MR
100 Q 5 10 15 20 25 30
Figure 6.27

3. Profit Maximization for a monopolist Worked Example 6.26
3500
(a) TC
3000
2500 TR
2000
1500
1000 Q
= 15
500
Q = 1 Q 5 10 15 20 25
-500 p
-1000
400
(b)
Profit maximization
350 MC
300
250
Profit minimization
200
150
100 MR 50 Q 5 10 15 20 25
Figure 6.28

4. Total Cost, Fixed Cost, Marginal Cost and Variable Cost
Figure 6.37 C
(a) TC
TVC
Points of inflection Q
(b) C
Minimum
MC = 25 MC Q
Figure 6.37

5. Relationship between TC, MC, AVC, AC
(a) Figure 6.38: Worked Example 6.32 C
(a) TC ,
TVC ,
TFC
functions TC
TVC
Points of inflexion
TFC Q C
(b) AC ,
AVC , MC
functions
Minimum AC MC
Minimum
AVC
Minimum MC AC
AVC Q

6. Points of intersection for MC, AC, AVC
Graph MC. AC. AVC as given in Worked Example 6.32 C
(b) AC ,
AVC , MC
functions
Minimum MC AC
Minimum
Minimum
AVC MC AC
AVC Q
Figure 6.38(b): Worked Example 6.32

7. Point of inflexion on the production function
Worked Example 6.29 / 6.30
Point of inflexion on the production function Q
(a) Short-run production function
400
350 Q
= f ( L )
300
250
200
Point of inflexion
150
100 50 L 2 4 6 8 10 12 14 16 18 20 22
Maximum MP L MP L 30
APL
Maximum
APL 25 20
APL 15 10 5 L 2 4 6 8 10 12 14 16 18 20 22 -5
-10
(b) MP L ,
APL
functions
-15
Figure Short-run production function,
and
APL
functions MP L

8. The relationship between TR, MR and elasticity of demand
Figure 6.41: Worked Example 6.42 P MR MR = Q
(MR = a -2bQ) P = Q
(P = a - bQ) Q TR e d
<
> - 1 e d
>
< - 1 e d = - 1 TR Q = - 60 6 2 . a Q =
a/b Q = 2 b Q