Question

A firm has hired you as an analyst to determine the quantity it should produce to maximize profits. Fill in the table, and provide the quantity of goods the monopoly should produce to maximize profit in the space below. Do NOT use commas to separate thousands. Use a space if you'd like. (e.g. write 2000 or 2 000 instead of 2,000. Laulima uses periods and commas as decimal points, so writing 2,000 makes Laulima think your answer is 2.000.)

Price	Quantity	Total Cost	Total Revenue	Profit
25	0	130
24	10	275
23	20	435
22.5	30	610
22	40	800
21.60	50	1005
21.20	60	1225

The firm should produce   units of the good in order to maximize profit.

Answer 1

MC of n the unit=(TC of n units -TC of p units )/(n-p)...............n>p

TR=P*Q

MR of n th unit=(TR of n units -TR of p units)/(n-p)...................n>p

profit=TR-TC
The firm produces at MR=MC or the closet lower MC

where Q=40 units the firm produces 40 units to maximize profit.

Price	Quantity	Total Cost	MC	Total Revenue	MR	Profit
25	0	130		0		-130
24	10	275	14.5	240	24	-35
23	20	435	16	460	22	25
22.5	30	610	17.5	675	21.5	65
22	40	800	19	880	20.5	80
21.6	50	1005	20.5	1080	20	75
21.2	60	1225	22	1272	19.2	47