Tillie$$s Trilbies estimates that revenues and expenditures for the next fiscal year are:

Revenue and Cost Data

Item Amount

Total Revenue $$6,800,000$

Cost of Materials $$5,000,000$

Cost of Labor $$1,000,000$

Advertising $$100,000$

Insurance $$50,000$

Rent $$350,000$

Miscellaneous Expenses $$100,000$

Calculate Tilly's accounting profit.

Suppose that in order to open her trilby business Tilly gave up a $$250,000$ per year job as a buyer at the exclusive Hammocker Shlumper department store. Calculate Tilly's economic profit.

The total revenue and total cost equations of a firms are

TR$=25$Q

TC$=100+20$Q$+0\mathrm{.}025$Q$2$

What is this firm's total profit equation?

What is the firm's marginal revenue equation?

What is the firm's marginal cost equation?

At what level of output is total profit maximized?

How much profit is earned?