Consider the total cost and the total revenue given in the table below
Consider the total cost and the total revenue given in the table below:
Quantity |
Total cost (in €) |
Total revenue (in €) |
Marginal cost (in €) |
Marginal revenue (in €) |
Profit (in €) |
0 |
8 |
0 |
– |
– |
-8 |
1 |
9 |
8 |
1 |
8 |
-1 |
2 |
10 |
16 |
1 |
8 |
6 |
3 |
11 |
24 |
1 |
8 |
13 |
4 |
13 |
32 |
2 |
8 |
19 |
5 |
19 |
40 |
6 |
8 |
21 |
6 |
27 |
48 |
8 |
8 |
21 |
7 |
37 |
56 |
10 |
8 |
19 |
a) Calculate profit for each quantity. How much should the firm produce to maximize profit?
b) Calculate marginal revenue and marginal cost for each quantity.