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Short Run Profit Maximization

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Output price FC VC TC TR Profit/Loss
0 $100 $100 0 100 0 -$100
1 90 100 50 150 90 - 60
2 80 100 90 190 160 - 30
3 70 100 150 250 210 - 40
4 60 100 230 330 240 - 90
5 50 100 330 430 250 - 180
6 40 100 450 550 240 - 310
7 30 100 590 690 210 - 480

What is the best profit or loss available to this firm?
Should the firm operate or shut down in the short run? Why?
What is the relationship between marginal revenue and marginal cost as the firm increases output?

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The expert examines short run profit maximization.

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The best profit is ($30) under output #2. The biggest loss is ($480) under output #7.

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