Quantity (Bushels of rutabagas) Total Revenue (Dollars) Total Cost (Dollars) 0 0
ID: 2440949 • Letter: Q
Question
Quantity
(Bushels of rutabagas)
Total Revenue
(Dollars)
Total Cost
(Dollars)
0
0
10
2
17
21
4
34
27
6
51
31
9
76.5
35
11
93.5
43
13
110.5
49
15
127.5
57
16
136
70
The above table has the total revenue and total cost schedule for Omar, a perfectly competitive grower of rutabagas. Omar begins to earn a profit when he produces ________ bushels of rutabagas.
Quantity
(Bushels of rutabagas)
Total Revenue
(Dollars)
Total Cost
(Dollars)
0
0
10
2
17
21
4
34
27
6
51
31
9
76.5
35
11
93.5
43
13
110.5
49
15
127.5
57
16
136
70
Explanation / Answer
Answer: 4
Since Profit equals Total Revenue - Total Cost, the firm will make the profit when TR exceeds TC. Thus the firm makes profit when producing 4 bushels.