Question

The following table shows the total cost schedule of a competitive firm. It is given that the price of the good is Rs 10. Calculate the profit at each output level. Find the profit maximising the level of output. Quantity Sold TC (Rs ) 0 5 1 15 2 22 3 27 4 31 5 38 6 49 7 63 8 81 9 101 10 123

Answer 1

Answer:

11

Explanation:

is that the ans of this question

Answer 2

The profit maximizing is at level of Rs 12

Explanation:

• The formula for TR is as:

TR = P × Q

• So, computing the TR for Quantity sold 0 as:

TR = 10 × 0

TR = 0

• Computing the TR for Quantity sold 1 as:

TR = 10  × 1

TR = 10

NOTE: Computing the TR as same from Quantity sold till 10

• The formula for Profit as:

Profit = TR - TC

• So, computing the Profit for Quantity sold 0 as:

Profit = 0 - 5

Profit = -5

• Computing the Profit for Quantity sold 1 as:

Profit = 10 - 15

Profit = -5

NOTE: Computing the Profit as same from Quantity sold till 10

The profit is maximized at the 5 units of output, where the business is earning the profit of Rs 12.

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