# Finding optimal output level

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.

https://brainmass.com/economics/price-levels/finding-optimal-output-level-362122

#### 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.