Table 8.3
$\begin{array}{cc}
\begin{array}{c}
\text { Quantity } \
\text { of Output }
\end{array} & \begin{array}{c}
\text { Total } \
\text { Cost (\$) })
\end{array} \
\hline 0 & 50 \
10 & 85 \
20 & 150 \
30 & 220 \
40 & 305 \
50 & 455
\end{array}$
-Refer to Table 8.3,which shows the output supplied by a firm and its total cost of production.If the market price is $8.50,the profit-maximizing output and profit are _____

Question

Table 8.3
 $\begin{array}{cc}
\begin{array}{c}
\text { Quantity } \
\text { of Output }
\end{array} & \begin{array}{c}
\text { Total } \
\text { Cost (\$) })
\end{array} \
\hline 0 & 50 \
10 & 85 \
20 & 150 \
30 & 220 \
40 & 305 \
50 & 455
\end{array}$
-Refer to Table 8.3,which shows the output supplied by a firm and its total cost of production.If the market price is $8.50,the profit-maximizing output and profit are _____

Quizplus · Accepted Answer

To find the profit-maximizing output, we calculate the profit at each level of output. Profit is calculated as (Price × Quantity) - Total Cost. At a price of $8.50, for 40 units, the revenue is $8.50 × 40 = $340. The total cost for 40 units is $305, so the profit is $340 - $305 = $35. This is the highest profit achievable from the given options, making 40 units the profit-maximizing output and $35 the maximum profit.

Table 83 -Refer to Table 8