QopyQat Printing: Profit Maximization

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• Calculating output, price, total revenue and total profit

  +63*268000=$17,484,000 Total Revenue, TR=P*Q=96.5*268000=$25,862,000 Profit=TR-TC=25862000-17484000=$8,378,000 At profit maximization Output=268,000 units Price=$96.5 per unit Profit=$8,378,000 C.

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• Maximizing Shareholder's wealth

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  d) What happens to the profit maximizing level of output as s increases Profit maximization output is given by clearly if s increases, profit maximization output will decrease.

• Using Charts to Show Profit Maximization

  Show how marginal revenue and marginal profit relate to profit maximization. This Excel chart uses made-up data and formulas to show profit maximization for a perfectly competitive firm.