Problem 5

RETURN

The table shows the price, output and cost data for a typical firm in an industry.
 
 
OUTPUT
PRICE
TR
TC
MR
MC
PROFIT
0
19
 
20
     
1
18
 
30
     
2
17
 
38
     
3
16
 
44
     
4
15
 
48
     
5
14
 
54
     
6
13
 
62
     
7
12
 
72
     
8
11
 
84

TR = total revenue    MR = marginal revenue   MC =  marginal costs
(a) complete the table.
(b) at what level of output is profit maximized? (Between which units of output?)

Solution