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Quantity 0 1 Price 320 260 230 200 170 140 110 80 50 Total Revenue 0 260 460 600 680 700 660 560 400 Marginal

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Quantity 0 1 Price 320 260 230 200 170 140 110 80 50 Total Revenue 0 260 460 600 680 700 660 560 400 Marginal Revenue 260 200 140 80 20 -100 -160 What quantity should the firm produce to maximize profit? What is the marginal revenue at the optimal quantity? What is the marginal cost at the optimal quantity? What is the maximum profit? (> Total Cost () 5 25 45 65 85 105 125 145 165 () () Marginal Cost 20 20 20 2O 20 20 2O 20 Total Profit -5 235 415 535 595 595 535 415 235 Marginal Profit 240 180 120 60 60 120 -180

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