Illustrate at what output level is profit maximized


Fill the missing values of TR, MR, TC, MC, marginal profit and identify the revenue maximizing and profit mazimizng output.

a.Fill in the missing data for price (P), total revenue(TR), marginal revenue (MR), total cost (TC), marginal cost (MC), profit (π), and marginal profit (Mπ) in the following table:

Q
P ($)
TR = P×Q ($)
MR = ∂TR/∂Q($)
TC ($)
MR = ∂TC/∂Q($)
Π ($)
Mπ = ∂Π/∂Q($)
0
160
0
---
0
0
0
---
1
150
150
150
25
25
125
125
2
140


55
30

100
3

390


35
300
75
4


90
130

350

5
110
550

175



6

600
50

55
370

7

630

290
60

-30
8
80
340

355

285

9




75

-85
10

600

525



b. Illustrate at what output level is profit maximized?
c. Illustrate at what output level is revenue maximized?
d. Describe any differences in your answers to part B and C.

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Business Economics: Illustrate at what output level is profit maximized
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