Quantity TFC TVC 45 0 45 20 45 35 45 45 45 75 45 120 45 180 0 2 3 4 6 https://ps
ID: 1162050 • Letter: Q
Question
Quantity TFC TVC 45 0 45 20 45 35 45 45 45 75 45 120 45 180 0 2 3 4 6 https://psu.instructure.com/courses/1891366/quizzes/3418920/take 4 pts Examine the table above, which gives information about the costs of a perfectly mpetitive firm. You are hired to determine the profit-maximizing quantity for the firm at different prices. For each price listed, you must find the output level, total revenue, total cost, and profit. When the market price is $44. What is the profit maximizing level of output? What is total revenue at this level of output? What is the total cost at this level of output? What is the profit at this level of output?Explanation / Answer
Quantity TFC TVC TC MC TR MR Profit 0 45 0 45 - 0 - -45 1 45 20 65 20 44 44 -19 2 45 35 80 15 88 44 8 3 45 45 90 10 132 44 42 4 45 75 120 30 176 44 56 5 45 120 165 45 220 44 55 6 45 180 225 60 264 44 39 Req 1. Profit maximizing output is where MR>=MC (here MR is not equal however it is greater than MC till 4th unit) Hence, Profit maximizing output is 4 units Req 2: Total revenue at 4 units of output: $ 176. Req 3: Total cost at 4 units of output: $ 120. Req 4: Total profits at 4 units of output: $ 56.