Module 4 Profit Maximization

# Module 4 Profit Maximization -...

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1. Use the following to calculate profit at each quantity of output. Total Output Price Total Revenue (TR) Cost ( C ) 0 \$1,900.00 \$- \$1,000.00 1 \$1,700.00 \$1,700.00 \$2,000.00 2 \$1,650.00 \$3,300.00 \$2,800.00 3 \$1,600.00 \$4,800.00 \$3,500.00 4 \$1,550.00 \$6,200.00 \$4,000.00 5 \$1,500.00 \$7,500.00 \$4,500.00 6 \$1,450.00 \$8,700.00 \$5,200.00 7 \$1,400.00 \$9,800.00 \$6,000.00 8 \$1,350.00 \$10,800.00 \$7,000.00 9 \$1,300.00 \$11,700.00 \$9,000.00 *  Highlighted in yellow you will find the profit at each quantity of output

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Profit (TR - C) - \$(300.00) \$500.00 \$1,300.00 \$2,200.00 \$3,000.00 \$3,500.00 \$3,800.00 \$3,800.00 \$2,700.00
2. Use the table to calculate marginal revenue and marginal cost. Total Output Price Total Revenue Cost Marginal Revenue 0 \$1,900.00 \$- \$1,000.00 - 1 \$1,700.00 \$1,700.00 \$2,000.00 \$1,700.00 2 \$1,650.00 \$3,300.00 \$2,800.00 \$1,600.00 3 \$1,600.00 \$4,800.00 \$3,500.00 \$1,500.00 4 \$1,550.00 \$6,200.00 \$4,000.00

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## Module 4 Profit Maximization -...

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