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Below is some data for a manufacturing firm that produces leather jackets: Complete the chart below, and state the number of leather jackets that should
Below is some data for a manufacturing firm that produces leather jackets: Complete the chart below, and state the number of leather jackets that should be produced in this business to maximize profits:
Units Produced | Fixed Cost | Variable Cost | Total Cost | Marginal Cost | Marginal Revenue | Total Revenue | Profit | MR-MC | |
---|---|---|---|---|---|---|---|---|---|
0 | $62 | - | $62 | $0 | $0 | $0 | $62 | ||
1 | $62 | $28 | $90 | $28 | $40 | $40 | $50 | 1 | |
2 | $62 | $48 | $110 | $______ | $40 | $80 | $30 | 20 | |
3 | $62 | $64 | $126 | $16 | $40 | $______ | $6 | 24 | |
4 | $62 | $82 | $______ | $18 | $40 | $160 | $16 | ________ | |
5 | $62 | $104 | $166 | $22 | $40 | $_____ | $34 | 18 | |
6 | $62 | $130 | $192 | $_______ | $40 | $240 | $48 | 14 | |
7 | $62 | $162 | $224 | $32 | $40 | $280 | $_____ | 8 | |
8 | $62 | $______ | $264 | $40 | $40 | $320 | $56 | 0 | |
9 | $62 | $262 | $324 | $60 | $40 | $_____ | $36 | -20 | |
10 | $62 | $342 | $404 | $80 | $40 | $400 | $4 | -40 |
At what level of production should this producer operate to maximize profit? Why?
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