Chapter 9 What is the profit-maximizing level of output and price? What is the a
ID: 1168039 • Letter: C
Question
Chapter 9
What is the profit-maximizing level of output and price?
What is the amount of total profit?
Quantity
(units)
Price
(dollars)
Total Revenue (dollars)
Marginal revenue
(dollars)
Total
Cost
Marginal cost
(dollars)
1
22
6
6
2
20
14
8
3
18
26
12
4
16
44
18
5
14
72
28
6
12
112
40
7
10
166
54
8
8
236
70
Quantity
(units)
Price
(dollars)
Total Revenue (dollars)
Marginal revenue
(dollars)
Total
Cost
Marginal cost
(dollars)
1
22
6
6
2
20
14
8
3
18
26
12
4
16
44
18
5
14
72
28
6
12
112
40
7
10
166
54
8
8
236
70
Explanation / Answer
Quantity
(units)
Price
(dollars)
Total Revenue (dollars)
Marginal revenue
(dollars)
Total
Cost
Marginal cost
(dollars)
1
22
22
6
6
2
20
40
18
14
8
3
18
54
14
26
12
4
16
64
10
44
18
5
14
70
6
72
28
6
12
72
2
112
40
7
10
70
-2
166
54
8
8
64
-6
236
70
Profit maximization happens when Profit (= TR - TC) is highest at 28 (Q = 3, P = 18).
Quantity
(units)
Price
(dollars)
Total Revenue (dollars)
Marginal revenue
(dollars)
Total
Cost
Marginal cost
(dollars)
1
22
22
6
6
162
20
40
18
14
8
263
18
54
14
26
12
284
16
64
10
44
18
205
14
70
6
72
28
-26
12
72
2
112
40
-407
10
70
-2
166
54
-968
8
64
-6
236
70
-172