Economics (MindTap Course List)

13th Edition
Roger A. Arnold
ISBN: 9781337617383



Economics (MindTap Course List)

13th Edition
Roger A. Arnold
ISBN: 9781337617383
Textbook Problem

According to the accompanying table, what quantity of output should the firm produce? Explain your answer.


To determine

Quantity of output produced by the firm.


Table 1 shows the different quantities of output produced at different total revenues and total costs.

Table 1

QuantityTotal revenueTotal cost

From the different quantitates shown in Table 1, the firm should produce 5 units of output because the total revenue is greater than the total cost, and also at quantity 5, the marginal revenue is equal to the marginal cost. The calculation of marginal revenue and marginal cost is shown below:

 Marginal revenue can be calculated as follows:

 Marginal revenue=Total revenuePresentTotal revenuePreviousQuantityPresentQuantityPrevious        (1)

 Substitute the respective values in Equation (1) to calculate the marginal revenue at quantity 5 units

Still sussing out bartleby?

Check out a sample textbook solution.

See a sample solution

The Solution to Your Study Problems

Bartleby provides explanations to thousands of textbook problems written by our experts, many with advanced degrees!

Get Started

Additional Business Solutions

Find more solutions based on key concepts

Show solutions add

List and describe six costs of inflation.

Principles of Economics (MindTap Course List)

Why is productivity important?

Principles of Microeconomics (MindTap Course List)

Describe the Taguchi quality loss function, and relate it to robust quality.

Cornerstones of Cost Management (Cornerstones Series)

SPOT AND FORWARD RATES Anderson Australian Imports has agreed to purchase 15,000 cases of Australian wine for 4...

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)

What are the primary issues in accounting for current liabilities?

Intermediate Accounting: Reporting And Analysis