Ans: Before solving this question, one needs to understand how can we calculate profit.
Profit = Total Revenue - Total Cost
From the given ques, we can estimate that total cost will be equal to the wages given to the laborers, i.e., TC= L*W. Similarly. total revenue can be estimated by the price of the output produced, i.e, TR= P*Q.
Using the above formulae, given wages=$40 and price= $10
Q | L | TC (L*W) | TR (P*Q) | PROFIT (TR-TC) |
10 | 1 | 40 | 100 | 60 |
19 | 2 | 80 | 190 | 110 |
27 | 3 | 120 | 270 | 150 |
34 | 4 | 160 | 340 | 180 |
40 | 5 | 200 | 400 | 200 |
45 | 6 | 240 | 450 | 210 |
49 | 7 | 280 | 490 | 210 |
52 | 8 | 320 | 520 | 200 |
54 | 9 | 360 | 540 | 180 |
55 | 10 | 400 | 550 | 150 |
385 | 55 | 2200 | 3850 | 1650 |
Total Profit= Total Revenue- Total Cost
or, 1650= 3850-2200
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