production are $100. The total variable costs are $64 for one unit, $84 for two units, $114 for three units, $184 for four units, and $270 for five units. In the form of a table, calculate total revenue, marginal revenue, total cost and marginal cost for each output level (one to five units). What is the profit maximizing quantity?
production are $100. The total variable costs are $64 for one unit, $84 for two units, $114 for three units, $184 for four units, and $270 for five units. In the form of a table, calculate total revenue, marginal revenue, total cost and marginal cost for each output level (one to five units). What is the profit maximizing quantity?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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
Transcribed Image Text:Perfectly competitive firm Paradise Inc. sells winter
coats. Coats sell for $72 each. The fixed costs of
production are $100. The total variable costs are
$64 for one unit, $84 for two units, $114 for three
units, $184 for four units, and $270 for five units. In
the form of a table, calculate total revenue,
marginal revenue, total cost and marginal cost for
each output level (one to five units). What is the
profit maximizing quantity?
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