Econ 196e Spread Sheeets Spreadsheets, along with word processors, are the most useful types of software for the general user. This is an application of Excel to microeconomics. It involves computing revenue, costs, and profit as functions of output. In column A, under output, enter a 0 in row 4. It is assumed that cost is fixed cost plus marginal variable cost times output.
Profit is revenue minus cost.
Find the maximum profit using the MAX function. The profit calculated is before tax profit. Assume there is a 40 percent profit tax. Find the maximum after tax profit. Determination of the maximum profit and the maximum profit output level for a firm in different types of markets.