Table 8.5
$$\begin{array} { | c | c | c | }
\hline \begin{array} { c }
\text { Quantity } \
\text { of Output }
\end{array} & \begin{array} { c }
\text { Total } \
\text { Revenue } ( \$ )
\end{array} & \begin{array} { c }
\text { Total } \
\text { Cost } ( \$ )
\end{array} \
\hline 0 & 0 & 50 \
\hline 10 & 50 & 70 \
\hline 20 & 100 & 90 \
\hline 30 & 150 & 120 \
\hline 40 & 200 & 200 \
\hline 50 & 250 & 325 \
\hline
\end{array}$$
-Refer to Table 8.5,which shows the output supplied by a firm,its total revenue,and its total cost of production.What is the profit-maximizing output?

Question

Table 8.5
 $$\begin{array} { | c | c | c | } 
\hline \begin{array} { c } 
\text { Quantity } \
\text { of Output }
\end{array} & \begin{array} { c } 
\text { Total } \
\text { Revenue } ( \$ )
\end{array} & \begin{array} { c } 
\text { Total } \
\text { Cost } ( \$ )
\end{array} \
\hline 0 & 0 & 50 \
\hline 10 & 50 & 70 \
\hline 20 & 100 & 90 \
\hline 30 & 150 & 120 \
\hline 40 & 200 & 200 \
\hline 50 & 250 & 325 \
\hline
\end{array}$$
-Refer to Table 8.5,which shows the output supplied by a firm,its total revenue,and its total cost of production.What is the profit-maximizing output?

Quizplus · Accepted Answer

Profit is maximized where the difference between total revenue and total cost is the greatest. At 30 units, the total revenue is $150 and the total cost is $120, resulting in a profit of $30. Beyond this point, the increase in total cost is greater than the increase in total revenue, reducing profit.

Table 85 -Refer to Table 8