Table 9.4
$\begin{array}{|c|c|c|c|c|c|c|}
\hline \begin{array}{c}
\text { Quantity } \
\text { Sold }
\end{array} & \begin{array}{c}
\text { Price } \
\text { (dollars )}
\end{array} & \begin{array}{c}
\text { Total } \
\text { Revenue } \
\text { (dollars) }
\end{array} & \begin{array}{c}
\text { Marginal } \
\text { Revenue }
\end{array} & \begin{array}{c}
\text {Total}\
\text { Cost } \
\text { (dollars) }
\end{array} & \begin{array}{c}
\text { Marginal } \
\text { Cost }
\end{array} & \begin{array}{c}
\text { Profit } \
\text { (dollars) }
\end{array} \
\hline 0 & 10 & 0 & \cdots & 2 & \cdots & -2 \
\hline 1 & 9 & 9 & & 8 & & \
\hline 2 & 8 & 16 & & 13 & & \
\hline 3 & 7 & 21 & & 17 & & \
\hline 4 & 6 & 24 & & 20 & & \
\hline 5 & 5 & 25 & & 22 & & \
\hline 6 & 4 & 24 & & 26 & & \
\hline
\end{array}$
Table 9.4 lists estimated revenues and costs (per week) for plastic vials (100 vials per box) for the Victoria Biological Supplies Company. Victoria sells plastic vials to university and private research laboratories.
-Refer to Table 9.4.Victoria's profit-maximising output is where ______.

Question

Table 9.4
 $\begin{array}{|c|c|c|c|c|c|c|}
\hline \begin{array}{c}
\text { Quantity } \
\text { Sold }
\end{array} & \begin{array}{c}
\text { Price } \
\text { (dollars )}
\end{array} & \begin{array}{c}
\text { Total } \
\text { Revenue } \
\text { (dollars) }
\end{array} & \begin{array}{c}
\text { Marginal } \
\text { Revenue }
\end{array} & \begin{array}{c}
\text {Total}\
\text { Cost } \
\text { (dollars) }
\end{array} & \begin{array}{c}
\text { Marginal } \
\text { Cost }
\end{array} & \begin{array}{c}
\text { Profit } \
\text { (dollars) }
\end{array} \
\hline 0 & 10 & 0 & \cdots & 2 & \cdots & -2 \
\hline 1 & 9 & 9 & & 8 & & \
\hline 2 & 8 & 16 & & 13 & & \
\hline 3 & 7 & 21 & & 17 & & \
\hline 4 & 6 & 24 & & 20 & & \
\hline 5 & 5 & 25 & & 22 & & \
\hline 6 & 4 & 24 & & 26 & & \
\hline
\end{array}$
 Table 9.4 lists estimated revenues and costs (per week) for plastic vials (100 vials per box) for the Victoria Biological Supplies Company. Victoria sells plastic vials to university and private research laboratories.
-Refer to Table 9.4.Victoria's profit-maximising output is where ______.

Quizplus · Accepted Answer

To maximize profit, a firm should produce at an output level where marginal revenue (MR) equals marginal cost (MC). In Table 9.4, the MR and MC are both equal to $3 at an output of 500 vials per week. At this output level, the total revenue is $1,500 ($3 x 500 vials) and the total cost is $1,470, resulting in a total profit of $30 per week. Therefore, the profit-maximizing output is where the marginal revenue and marginal cost both equal $3.

Table 94 Table 94 Lists Estimated Revenues and Costs (Per Week) for Plastic