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The table below gives the quantity of output and the total cost for a perfectly competitive firm
that can sell all of its output at $9 per unit. In a new column, calculate the firm's total revenue at
each quantity. In a new column, calculate the firm's total profit. What is the firm's profit
maximizing level of output? In new columns, calculate the firm's marginal revenue and
marginal cost. What is the firm's profit maximizing level of output?
Solution
Explanation:
Quantity (Units) = (i)
Total Sale Revenue = { (i)*9 Per Unit} = (ii) (in $)
Total Cost (as Given ) (iii)
(in $)
Total Profit (ii)-(iii) = (iv) (in $)
Marginal Revenue = (Total revenue at existing level
Quantity (Units) = (i)
Total Sale Revenue = { (i)*9 Per Unit} = (ii) (in $)
Total Cost (as Given ) (iii)
(in $)
Total Profit (ii)-(iii) = (iv) (in $)
Marginal Revenue = (Total revenue at existing level

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The table below gives the quantity of output and the total cost for a.pdf

  • 1. The table below gives the quantity of output and the total cost for a perfectly competitive firm that can sell all of its output at $9 per unit. In a new column, calculate the firm's total revenue at each quantity. In a new column, calculate the firm's total profit. What is the firm's profit maximizing level of output? In new columns, calculate the firm's marginal revenue and marginal cost. What is the firm's profit maximizing level of output? Solution Explanation: Quantity (Units) = (i) Total Sale Revenue = { (i)*9 Per Unit} = (ii) (in $) Total Cost (as Given ) (iii) (in $) Total Profit (ii)-(iii) = (iv) (in $) Marginal Revenue = (Total revenue at existing level Quantity (Units) = (i) Total Sale Revenue = { (i)*9 Per Unit} = (ii) (in $) Total Cost (as Given ) (iii) (in $) Total Profit (ii)-(iii) = (iv) (in $) Marginal Revenue = (Total revenue at existing level