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Graphing cost data to show maximum profit

Output Price Total Cost Total Revenue Marginal Revenue Marginal Cost Profit
0 $1,900 $1000
1 $1,700 $2000
2 $1,650 $2800
3 $1,600 $3500
4 $1,550 $4000
5 $1,500 $4500
6 $1,450 $5200
7 $1,400 $6000
8 $1,350 $7000
9 $1,300 $9000

Calculate Total Revenue, Marginal Revenue, Marginal Cost, and Profit. Graph each to show maximum profit. Label the profit-maximizing quantity and price, total cost, total revenue, and profit.

Solution Preview

See the attached file for the calculations and graph. Click on each cell in the table to see ...

Solution Summary

Given a firm's Demand curve and its Total Cost function, this solution shows how to use Microsoft Excel to calculate Total Revenue, Marginal Revenue, Marginal Cost, and Profit

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