The table given below shows the total revenue and total cost of a firm at different levels of output.Table 10.2

-Consider the perfectly competitive firm described in Table 10.2. How much profit will the firm make if it is a profit maximizer?

Question

The table given below shows the total revenue and total cost of a firm at different levels of output.Table 10.2
 
-Consider the perfectly competitive firm described in Table 10.2. How much profit will the firm make if it is a profit maximizer?

Quizplus · Accepted Answer

To find the profit-maximizing level of output, we need to look for the output level where marginal revenue (MR) equals marginal cost (MC). From the table, we can see that at an output level of 4 units, MR = $46, which is equal to MC. At this output level, the firm's total revenue is $184 and total cost is $138, resulting in a profit of $46. Therefore, the answer is (C).

The Table Given Below Shows the Total Revenue and Total