Consider total cost and total revenue, given in the following table:

In the final column, enter profit for each quantity. (Note: If the firm suffers a loss, enter a negative number in the appropriate cell.)

Quantity	Total Cost	Marginal Cost	Total Revenue	Marginal Revenue	Profit
(Dollars)	(Dollars)	(Dollars)	(Dollars)	(Dollars)
0	5		0
1	6	6
2	8	12
3	11	18
4	15	24
5	20	30
6	26	36
7	35	42

In order to maximize profit, how many units should the firm produce?Check all that apply.

4

5

6

7

In the previous table, enter marginal revenue and marginal cost for each quantity.

On the following graph, use the green points (triangle symbol) to graph the marginal-revenue curve, then use the orange points (square symbol) to plot the marginal-cost curve. (Note: Be sure to plot from left to right and to plot between integers. For example, if the marginal cost of increasing production from 1 unit to 2 units is $5, then you would plot a point at (1.5, 5).)

Marginal RevenueMarginal Cost01234567109876543210Revenue and CostsQuantity

The marginal-revenue curve and the marginal-cost curve cross at a quantity .

\"II A s s Marginal Revenue 1 I e Marginal Cast Revenue and Costs L11 4 s 2 1 e u 1 2 s 4 s e 7 Quantity The marginalrevenue curve and the marginalcost curve crass at a quantity:r v . This rm '7 in a competitive industrv, because marginal revenue is V as quantity increases