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Quantity (Bushels of rutabagas) Total Revenue (Dollars) Total Cost (Dollars) 0 0

ID: 2440956 • 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's total profit is maximized 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

Ans: Omar's total profit is maximized when he produces __15__ bushels of rutabagas.

Explanation:

Profit = Total Revenue - Total Cost

Quantity
(Bushels of rutabagas) Total Revenue
(Dollars) Total Cost
( Dollars ) Total Profit
( Dollars ) 0 0 10 -10 2 17 21 -4 4 34 27 7 6 51 31 20 9 76.5 35 41.5 11 93.5 43 50.5 13 110.5 49 61.5 15 127.5 57 70.5 16 136 70 66