Asked by Austin Collins on Apr 25, 2024
The following table contains information for a price taking competitive firm. Complete the table and determine the profit maximizing level of output (round your answer to the nearest whole number).
Total Marginal Fixed Average Total Average Marginal
Output Cost Cost Cost Cost Revenue Revenue Revenue
0 5 0
1 7 10
2 11 20
3 17 30
4 27 40
5 41 50
6 61 60
Competitive Firm
A business that operates in a market where it must compete with other firms for the same customers or resources.
Profit Maximizing
A strategy or process aimed at achieving the highest possible profit from business operations.
- Break down the relationship between total revenue, total cost, marginal revenue, and marginal cost to explore their impact on maximizing profitability.
- Employ marginal analysis to ascertain the levels of output at which profit is maximized.
- Perceive the representation of profit maximization strategies through graphical and tabular analysis of cost, revenue, and output levels.
Learning Objectives
- Break down the relationship between total revenue, total cost, marginal revenue, and marginal cost to explore their impact on maximizing profitability.
- Employ marginal analysis to ascertain the levels of output at which profit is maximized.
- Perceive the representation of profit maximization strategies through graphical and tabular analysis of cost, revenue, and output levels.