Consider the total cost and total revenue of Farm Fresh Diary Output Quantity (Milk in Liters) Total Revenue ( in Rupees) Total cost ( in Rupees) 0 0 30 1 80 50 2 160 80 3 240 120 4 320 170 5 400 230 6 480 300 7 560 380 8 640 470 i. Calculate Price, Average Revenue, Marginal revenue. Explain the conditions under which these values remain the same? ii. Calculate Profit, Marginal cost and change in Profit. What output quantity of milk maximizes profit for Farm Fresh Diary? iii. Graph MC and MR curves of Farm fresh Diary. What are the rules of Profit Maximization suggested by this graph?
Consider the total cost and total revenue of Farm Fresh Diary
Output Quantity
(Milk in Liters)
Total Revenue
( in Rupees)
Total cost
( in Rupees)
0 0 30
1 80 50
2 160 80
3 240 120
4 320 170
5 400 230
6 480 300
7 560 380
8 640 470
i. Calculate Price, Average Revenue, Marginal revenue. Explain the conditions under
which these values remain the same?
ii. Calculate Profit, Marginal cost and change in Profit. What output quantity of milk
maximizes profit for Farm Fresh Diary?
iii. Graph MC and MR
Maximization suggested by this graph?
iv. Suppose a tax of Rs.20 is imposed and government fixes price of milk at Rs.80 a liter.
Then what should be strategy of Farm Fresh Diary?
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