Optimization: Marginal Analysis- Quantity Determination, Profit Maximization
Given the following information, please state your suggestions: 12%
Price Quantity Total Revenue Total Cost
78 1 210
76 2 180
72 3 160
68 4 148
66 5 140
64 6 136
60 7 141
58 8 156
56 9 188
54 10 224
50 11 270
48 12 320
46 13 375
a. What will be the quantity that you will suggest to produce for reaching the optimization point (in resource allocation)? 3% Please specify your decision rule and present the number to support your decision (Must show your calculation steps and explain in words and with figures/graphs )- 3%.
b. What will be the profit amount when the resource allocation decision is optimized? 2%
c. Please draw a graph to show your profit, TC, TR, MR and MC 4%