Question

Total Cost is 80,90,102,120,145,180 for 1-6 units. FC=60

P = 19

Q =

TR =

TC =

profit =

Answer 1

MC(n)=TC(n)-TC(n-1)
MC(n)=marginal cost of n th unit
TC(n)=Total cost of n units of output

MC(1)=80-60=20 and os on

TR=P*Q

TR(0)=19*0=0 and so on

Profit=TR-TC

Profit(0)=0-60=-60 and so on

Q	TC	MC	TR	Profit
0	60		0	-60
1	80	20	19	-61
2	90	10	38	-52
3	102	12	57	-45
4	120	18	76	-44
5	145	25	95	-50
6	180	35	114	-66

The profit is maximum at P=MC or nearest lower MC

P=19 and MC=18 at Q=4 units

TR=4*19=76

TC=120

Profit=-44