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Cost and Profit Analysis

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In the attached table, I need the missing data for price, total revenue, marginal revenue, total cost, marginal cost, profit and marginal profit
TR = MR MC Profit MPi
Q P P*Q ▲ TR/▲Q TC ▲ TR/▲Q ▲π /▲Q
0 160 0 0 0
1 150 150 150 25 25 125 125
2 140 55 30 100
3 390 35 300 75
4 90 130 350
5 110 550 175
6 600 50 55 370
7 630 290 60 -30
8 80 640 355 285
9 75 -85
10 600 525

a) At what output level is profit maximized?

b) At what output level is revenue maximized?

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Solution Summary

First part deals with filling missing values using cost formulas. It contains cost graph and answers to specific questions asked related to cost table.

Solution Preview

Please refer attached document. Graph and work done with the help of equation writer may not print here.

Solution

With the help of formulas given with each cost, missing entries can be found out.
Complete table is as under:

TR = MR MC Profit MPi
Q P P*Q ▲ TR/▲Q TC ▲ TR/▲Q ▲π /▲Q
0 160 0 ...

Solution provided by:
Lokesh Jain, MSc
Education
  • BEng (Hons) , Birla Institute of Technology and Science, India
  • MSc (Hons) , Birla Institute of Technology and Science, India
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