Consider the business whose Total Cost and Total Revenue for various quantities of a particular product are shown in the table below. QuantityTotal CostTotal Revenue01000125050023509503500135047251700510002000614002250 Use the Profit-Maximizing Rule to explain the quantity that this business should produce to maximize its profits. Answer must both state the number to produce and an explanation of how you used the profit-maximizing rule to arrive at that number.

Profit is maximized when Marginal Revenue(MR) is equal to the Marginal Cost(MC). This is the point…

Answered: Consider the business whose Total Cost…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Consider the business whose Total Cost and Total Revenue for various quantities of a particular product are shown in the table below.

Quantity	Total Cost	Total Revenue
0	100	0
1	250	500
2	350	950
3	500	1350
4	725	1700
5	1000	2000
6	1400	2250

Use the Profit-Maximizing Rule to explain the quantity that this business should produce to maximize its profits. Answer must both state the number to produce and an explanation of how you used the profit-maximizing rule to arrive at that number.

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