Calculate marginal revenue and marginal cost


Total Output (Q) Total Price (P) Total Revenue (TR) Total Cost (TC)
0 1900 0 1000
1 1700 1700 2000
2 1650 3300 2800
3 1600 4800 3500
4 1550 6200 4000
5 1500 7500 4500
6 1450 8700 5200
7 1400 9800 6000
8 1350 10800 7000
9 1300 11700 9000

                
1) Use the following to calculate profit at each quantity of output.               
                
2) Use the table in exercise A to calculate marginal revenue and marginal cost               
                
3) Use the information in A and B to graphically show maximum profit. Label the profit-maximizing quantity and price, total cost, total revenue, and profit.

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Macroeconomics: Calculate marginal revenue and marginal cost
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