How many units should the firm produce to maximize profit? MarginalTotalMarginalTotal CostProfitQuantity0 $1 $2 $3 $4 $5 $CostRevenueRevenue8 $$8 $8 $16 $24 $9.$(1)$4$102$8111$8$138 $$4$132321940 $48 $56 $207$8$206 $28 $$82$8207 $3798$191.

Profit is maximized at the output level, for for which MR = MC.

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Business

Economics

How many units should the firm produce to maximize profit?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

How many units should the firm produce to maximize profit?

Marginal
Total
Marginal
Total Cost
Profit
Quantity
0 $
1 $
2 $
3 $
4 $
5 $
Cost
Revenue
Revenue
8 $
$
8 $
8 $
16 $
24 $
9.
$
(1)
$4
$
10
2$
8
11
1
$
8
$
13
8 $
$4
$
13
2
32
19
40 $
48 $
56 $
20
7
$
8
$
20
6 $
28 $
$
8
2$
8
20
7 $
37
9
8
$
19
1.

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