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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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