Please include explanation to answers for problem #2 & #3. Solve assignment problem #2 & #3 only.
TRAN-603 Introduction to Urban Transportation Planning
HW Assignment 1: Microeconomics and Transportation Demand Analysis
Problem 1.
Given the demand function Q = 10 – 0.1×P, and the total cost function TC = 40 + 10×Q, calculate the following:
(a) Average revenue (AR),
(b) Total revenue (TR),
(c) Marginal revenue (MR),
(d) Marginal benefit (MB),
(e) Total benefit (TB),
(f) Average cost (AC),
(g) Marginal cost (MC),
(h) Total profit (TP),
(i) Marginal profit (MP),
(j) Total net benefit (TNB),
(k) Marginal net benefit (MNB),
(l) Maximum total profit (TPmax),
(m) Maximum total revenue (TRmax),
(n) Maximum total net benefit (TNBmax),
(o) Price elasticity value when Q = 6.
Problem 2.
(from Fundamentals of Transportation Systems Analysis. Volume 1: Basic Concepts, by Marvin L. Manheim. MIT Press, 1979. Problem 1.5(E), page 52-53.)
The country of Freelandia gained independence a few years ago and is mounting a major effort to promote new agricultural development in previously underdeveloped regions. A trucking operator in the town of K has previously been providing only local service. Now that a new major agricultural development program is under way, this operator is considering providing farm-to-market service to carry agricultural and other natural products from their origin in locality M to market at K. The distance is 150 miles (one way), with no intermediate major settlements. After discussions with the local agents of the producers at M, the trucker estimates that the demand function for shipments from M to K is
