Table 14-1
This table shows the revenue and costs of a parrot farmer.

-Refer to Table 14-1. The maximum profit available to this farmer's firm is:

Question

Table 14-1
This table shows the revenue and costs of a parrot farmer.
 
-Refer to Table 14-1. The maximum profit available to this farmer's firm is:

Quizplus · Accepted Answer

To find the maximum profit, we need to subtract the total cost from the total revenue for each possible quantity of parrots produced and sold. The quantity with the highest profit will be the maximum profit. For example, at a quantity of 3 parrots, the revenue is $60 and total cost is $15, so the profit is $45. Similarly, at a quantity of 4 parrots, the profit is $36. Thus, the maximum profit available to this farmer's firm is $45 at a quantity of 3 parrots.

Table 14-1 This Table Shows the Revenue and Costs of a Parrot