Question

3. In the following table, fill in the blanks after you have completed the entire table, determine the profit-maximizing output. Feel free to create columns in excel and provide the answer.

Output	Price	Total Revenue	Marginal Revenue	Total Cost	Marginal Cost	Total Profit
1	$20			$40		($20)
2				50
3				60
4				65	$5
5				85
6		$120		120

Answer 1

Output(Q)	Price	TR($)= P*Q	MR($) = ∆TR/∆Q	TC($)	MC($) = ∆TC/∆Q	Total Profit($) = TR - TC
1	20	20		40		-20
2	20	40	20	50	10	-10
3	20	60	20	60	10	0
4	20	80	20	65	5	15
5	20	100	20	85	20	15
6	20	120	20	120	35	0