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.

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