Question
The table below represents a firm's costs and revenues for producing and selling Blu-Ray players. Using the profit maximizing rule, at what level of output
The table below represents a firm's costs and revenues for producing and selling Blu-Ray players. Using the profit maximizing rule, at what level of output does the firm maximize profits?Assume that if a firm would have the same profit at two different levels of output, then the firm would choose the greater level of output. Also, assume that the only levels of output that the firm can produce are the levels of output given in the table.
| Quantity (Q) | Total Cost (TC) | Marginal Cost (MC) | Total Revenue (TR) | Marginal Revenue (MR) |
0 | $51 | - | $0 | - |
20 | $197 | $7.30 | $160 | $8.00 |
40 | $327 | $6.50 | $320 | $8.00 |
60 | $453 | $6.30 | $480 | $8.00 |
80 | $575 | $6.10 | $640 | $8.00 |
100 | $697 | $6.10 | $800 | $8.00 |
120 | $827 | $6.50 | $960 | $8.00 |
140 | $987 | $8.00 | $1,120 | $8.00 |
160 | $1,177 | $9.50 | $1,280 | $8.00 |
180 | $1,419 | $12.10 | $1,440 | $8.00 |
200 | $1,735 | $15.80 | $1,600 | $8.00 |
220 | $2,143 | $20.40 | $1,760 | $8.00 |
240 | $2,581 | $21.90 | $1,920 | $8.00 |
Q= ? Blu-ray player
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Macroeconomics
Authors: Michael Parkin
10th Edition
013485330X, 978-0134853307
