Consider the total cost and total revenue of Farm Fresh Diary Output Quantity(Milk in Liters) Total Revenue( in Rupees)Total cost( in Rupees)003018050216080324012043201705400230648030075603808640470Calculate Price, Average Revenue, Marginal revenue. Explain the conditions under which these values remain the same? 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? 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?

The firms operate on the basis of their costs and revenue incurred. The firms witness each function…

Answered: Consider the total cost and total…

Principles of Economics (MindTap Course List)

8th Edition

ISBN:9781305585126

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter14: Firms In Competitive Markets

Section: Chapter Questions

Problem 4PA

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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*

Calculate Price, Average Revenue, Marginal revenue. Explain the conditions under which these values remain the same?

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?

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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