Problem
Given the data in the table below for a perfectly competitive firm, calculate the missing values for MC & MR and find the profit maximizing level of output:
|
Output (units)
|
Total Cost
|
Marginal Cost
|
Total Revenue
|
Marginal Revenue
|
|
100
|
301.5
|
|
300
|
|
|
114
|
335.1
|
|
342
|
|
|
128
|
362.4
|
|
384
|
|
|
142
|
404.4
|
|
426
|
|
|
156
|
467.4
|
|
468
|
|
What is the profit maximizing level of output (Take the mid-point)?