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$)$

$050$

$166$

$2812$

$31118$

$41524$

$52030$

$62636$

$73542$

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 $(1\mathrm{.}5,5).)$

Marginal Revenue

Marginal Cost

$0$

$1$

$2$

$3$

$4$

$5$

$6$

$7$

$10$

$9$

$8$

$7$

$6$

$5$

$4$

$3$

$2$

$1$

$0$

Revenue and Costs

Quantity

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

This firm in a competitive industry, because marginal revenue is as quantity increases.

True or False: The industry is in a long$-$run equilibrium.

True

False