Question

The following table shows the total revenue and total cost schedules of a competitive firm. Calculate the profit at each output level. Determine also the market price of the good. Quantity Sold TR (Rs) TC (Rs) Profit 0 0 5 1 5 7 2 10 10 3 15 12 4 20 15 5 25 23 6 30 33 7 35 40

Answer 1

Answer:

8

Explanation:

is that ri8 ans of this question

Answer 2

Profit = TR - TC

AR = TR/Q

Therefore,

Quantity sold 0 =  0 (TR) = 5 (TC) = - 5 ( Profit) = -

Quantity sold 1  = 5 (TR) = 7 (TC) = -2  ( Profit) = 5 (AR)

Quantity sold 2  = 10 (TR) = 10 (TC) = 0 ( Profit) = 5 (AR)

Quantity sold 3  = 15 (TR) = 12 (TC) = 3  ( Profit) = 5 (AR)

Quantity sold 4  = 20 (TR) = 15 (TC) = 5 ( Profit) = 5 (AR)

Quantity sold 5  = 25 (TR) = 23 (TC) = 2 ( Profit) = 5 (AR)

Quantity sold 6  = 30 (TR) = 33 (TC) = -3 ( Profit) = 5 (AR)

Quantity sold 7 = 35 (TR) = 40 (TC) = -5 ( Profit)  = 5 (AR)