Chapter 8, Problem 39CTQ

The AAA Aquarium Co. sells aquariums for $\$\text{2}0$ each. Fixed costs of production are $\$\text{2}0$.

The total variable costs are $\$\text{2}0$ for one aquarium, $\$\text{25}$ for two units, $\$\text{35}$ for the three units, $\$\text{5}0$ for four units, and $\$\text{8}0$ 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 of output? On one diagram, sketch the total revenue and total cost curves. On another diagram, sketch the marginal revenue and marginal cost curves.