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    Finding optimal output level

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    Total Output (Q) Total Price (P) Total Revenue (TR) Total Cost (TC)
    0 1900 0 1000
    1 1700 1700 2000
    2 1650 3300 2800
    3 1600 4800 3500
    4 1550 6200 4000
    5 1500 7500 4500
    6 1450 8700 5200
    7 1400 9800 6000
    8 1350 10800 7000
    9 1300 11700 9000

    A. Use the following to calculate profit at each quantity of output.

    B. Use the table in exercise A to calculate marginal revenue and marginal cost

    C. Use the information in A and B to graphically show maximum profit.
    Label the profit-maximizing quantity and price, total cost, total revenue, and profit.

    © BrainMass Inc. brainmass.com October 10, 2019, 2:05 am ad1c9bdddf
    https://brainmass.com/economics/price-levels/finding-optimal-output-level-362122

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    Solution Preview

    Please refer attached file for graph and better clarity of tables.

    Total Output(Q) Total Price (P) Total Revenue (TR) Total Cost (TC) Total Profit MC* MR**
    TR-TC
    0 1900 0 1000 -1000
    1 1700 1700 2000 -300 1000 1700
    2 1650 3300 2800 500 800 1600
    3 1600 4800 3500 1300 700 1500
    4 1550 6200 ...

    Solution Summary

    Solution describes the methodology to find out the optimal output level. It also calculates associated profit with optimal output level.

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