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
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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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