Use the information for a competitive firm in the table below to answer questions 1 through 3. Quantity Total Revenue Total Cost MR MC $0 $ 32 45 40 $9 $8/5 6. 54 49 $9 $9 7 63 59 $9 $10 8 72 70 $9 $11 1. At which quantity of output is max Profit? ANSWER: Q= 6units, where MC=MR The maximum profit available to this firm is ANSWER: at Q=6, TR-TC= 2. $5. 3. If the firm finds that its marginal cost is $11, it should increase or decrease production to maximize profit?
Use the information for a competitive firm in the table below to answer questions 1 through 3. Quantity Total Revenue Total Cost MR MC $0 $ 32 45 40 $9 $8/5 6. 54 49 $9 $9 7 63 59 $9 $10 8 72 70 $9 $11 1. At which quantity of output is max Profit? ANSWER: Q= 6units, where MC=MR The maximum profit available to this firm is ANSWER: at Q=6, TR-TC= 2. $5. 3. If the firm finds that its marginal cost is $11, it should increase or decrease production to maximize profit?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
![Use the information for a competitive firm in the table below to answer questions 1 through 3.
Quantity
Total Revenue
Total Cost
MR
MC
$0
$ 32
5
45
40
$9
$8/5
54
49
$9
$9
7
63
59
$9
$10
8
72
70
$9
$11
1.
At which quantity of output is max Profit?
ANSWER:
Q= 6units, where MC=MR
2. The maximum profit available to
this firm is ANSWER: at Q=6, TR-TC=
$5.
3.
If the firm finds that its marginal cost is $11, it should increase or decrease production to maximize profit?
LO](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff2a7eb45-6ba3-4624-bf0f-b740fb733038%2Fcff3433e-9d3e-4d52-a98f-189cc0a2b6f9%2F4ia0c1y_processed.png&w=3840&q=75)
Transcribed Image Text:Use the information for a competitive firm in the table below to answer questions 1 through 3.
Quantity
Total Revenue
Total Cost
MR
MC
$0
$ 32
5
45
40
$9
$8/5
54
49
$9
$9
7
63
59
$9
$10
8
72
70
$9
$11
1.
At which quantity of output is max Profit?
ANSWER:
Q= 6units, where MC=MR
2. The maximum profit available to
this firm is ANSWER: at Q=6, TR-TC=
$5.
3.
If the firm finds that its marginal cost is $11, it should increase or decrease production to maximize profit?
LO
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