**Title: Understanding Profit Maximization in Economics****Introduction:**In the pursuit of maximizing profit, businesses often need to analyze various cost and revenue parameters. The profit-maximizing output is the level of production at which a business can achieve the highest possible profit. Below is a table that illustrates the relationship between output, price, total revenue, marginal revenue, total cost, marginal cost, and total profit.**Table: Output and Profit Analysis**| Output | Price | Total Revenue | Marginal Revenue | Total Cost | Marginal Cost | Total Profit ||--------|-------|---------------|------------------|------------|---------------|--------------|| 5 | $16 | - | - | 100 | - | -20 || 10 | | | | 150 | | || 15 | | | | 175 | 5 | || 20 | | | | 205 | | || 25 | | $480 | | 285 | | || 30 | | | | 390 | | |**Explanation of Terms:**- **Output:** The quantity of goods produced.- **Price:** The cost at which each unit is sold.- **Total Revenue:** Calculated as Price multiplied by Output, it represents the total income from sales.- **Marginal Revenue:** The additional revenue generated from selling one more unit of output.- **Total Cost:** The sum of all costs incurred in production at each output level.- **Marginal Cost:** The cost of producing one more unit of output.- **Total Profit:** The difference between Total Revenue and Total Cost.**Analyzing the Table:**1. **Initial Production Level (5 Units):** - Price per unit is $16. - Total Cost is $100, resulting in a Total Profit of -$20.2. **At 15 Units Output:** - Marginal Cost is given as $5, indicating the cost to produce the 15th unit. 3. **At 30 Units Output:** - Total Revenue is provided as $480, and Total Cost is $390. **Conclusion:**This table serves as a tool for understanding how different output levels affect overall profitability. By analyzing these figures

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Answered: What is the profit-maximizing output?…

What is the profit-maximizing output? Output Price Total Marginal Total Marginal Total Profit Revenue Revenue Cost Cost 5 $16 100 -20 10 150 15 175 5 20 205 25 285 30 $480 390 30 25 15 20

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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