Subject: Manegerial economics & policyUsing the information in the following table, determine how much the firm should produce in order to maximize profits. QUANTITY(Q)01234600 9=27101112PRICE(P)18017016015014013012011010090807060TOTALREVENUE(TR)0170320450560650720770800810800770720MARGINALREVENUE(MR)17015013011090288338870503010-10-30-50AVERAGETOTALCOST(AC)155.70102.8084.6376.2072.5071.8773.5977.3082.8190.0098.79109.13TOTALCOST(TC)100.00155.70205.60253.90304.80362.50431.20515.10618.40745.30900.001086.701309.60MARGINALCOST(MC)55.7049.9048.3050.9057.7068.7083.90103.30126.90154.70186.70222.90TOTALPROFIT-100.0014.30114.40196.10255.20287.50288.80254.90181.6064.70-100.00-316.70-589.60

Answer: Theoretically, profit maximization occurs where the marginal cost (MC) and marginal revenue…

Answered: Subject: Manegerial economics & policy…

Subject: Manegerial economics & policy Using the information in the following table, determine how much the firm should produce in order to maximize profits.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Subject: Manegerial economics & policy

Using the information in the following table, determine how much the firm should produce in order to maximize profits.

QUANTITY
(Q)
0
1234600 9=2
7
10
11
12
PRICE
(P)
180
170
160
150
140
130
120
110
100
90
80
70
60
TOTAL
REVENUE
(TR)
0
170
320
450
560
650
720
770
800
810
800
770
720
MARGINAL
REVENUE
(MR)
170
150
130
110
90
2883388
70
50
30
10
-10
-30
-50
AVERAGE
TOTAL
COST
(AC)
155.70
102.80
84.63
76.20
72.50
71.87
73.59
77.30
82.81
90.00
98.79
109.13
TOTAL
COST
(TC)
100.00
155.70
205.60
253.90
304.80
362.50
431.20
515.10
618.40
745.30
900.00
1086.70
1309.60
MARGINAL
COST
(MC)
55.70
49.90
48.30
50.90
57.70
68.70
83.90
103.30
126.90
154.70
186.70
222.90
TOTAL
PROFIT
-100.00
14.30
114.40
196.10
255.20
287.50
288.80
254.90
181.60
64.70
-100.00
-316.70
-589.60

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