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2. Consider the business whose Total Cost and Total Revenue for various quantities of a particular product are shown in the table below. Quantity Total
2. Consider the business whose Total Cost and Total Revenue for various quantities of a particular product are shown in the table below.
Quantity | Total Cost | Total Revenue |
0 | 100 | 0 |
1 | 250 | 500 |
2 | 350 | 950 |
3 | 500 | 1350 |
4 | 725 | 1700 |
5 | 1000 | 2000 |
6 | 1400 | 2250 |
Use the Profit-Maximizing Rule to explain the quantity that this business should produce to maximize its profits. To receive any credit, your answer must both state the number to produce and an explanation of how you used the profit-maximizing rule to arrive at that number.
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