Economics:
10th Edition
ISBN: 9781285859460
Author: BOYES, William
Publisher: Cengage Learning
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Chapter 23, Problem 1E
To determine
To calculate profit at each level of output.
Expert Solution & Answer
Explanation of Solution
Profit is calculated as total revenue minus total cost
i.e. Profit=TR-TC
| Total output | Price | Total cost (TC) | Total revenue (TR) | Profit=TR-TC |
| 0 | $1900 | $1000 | 0 | $-1000 |
| 1 | $1700 | $2000 | $1700 | $-300 |
| 2 | $1650 | $2800 | $3300 | $500 |
| 3 | $1600 | $3500 | $4800 | $1300 |
| 4 | $1550 | $4000 | $6200 | $2200 |
| 5 | $1500 | $4500 | $7500 | $3000 |
| 6 | $1450 | $5200 | $8700 | $3500 |
| 7 | $1400 | $6000 | $9800 | $3800 |
| 8 | $1350 | $7000 | $10800 | $3800 |
| 9 | $1300 | $9000 | $11700 | $2700 |
Economics Concept Introduction
Concept Introduction:
Total revenue:
Total receipts a seller can get by selling the goods.
Total cost:
Total expenses incurred for producing the goods.
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