Answer to Question #168327 in Economics for Alexa

Question

1. Complete the following table and identify the quantity that maximizes profit.

Quantity TR MR TC MC

0 0 - 5 -

1 10 2

2 20 15

3 30 10

4 10 37

Answer 1

Q TR MR TC MC

0 0 - 5 -

1 10 10 2 -3

2 20 10 15 13

3 30 10 10 -5

4 10 -20 37 27

The profit is maximized between 2 and 3 units produced at MR = MC.