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Variable Cost (dollars) $0 Quantity O 100 200 300 400 500 600 Total Cost (dollars) $1,000 1,360 1,560 1,960 2,760 4,000 5,800

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Q TC ($) VC($) MC($)=∆TC/∆Q
0 1000
100 1360 360 3.60
200 1560 560 2.00
300 1960 960 4.00
400 2760 1760 8.00
500 4000 3000 12.40
600 5800 4800 18.00

The profit maximization condition is P = MC. From the table it is seen that P = MC = $8 when the firm's quantity is 400. Thus the profit maximizing quantity is 400.

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