(a) Complete the table by calculating the missing figures P,Q,R,S,T,U. (b)At what out-put is profit maximized? (c) Calculate the profit when quantity sold is 5. (d) At what output does MC begin to rise?
Explanation
(a)Total Revenue at P = 30 + 1 = N31 Marginal Revenue at Q = N28 - N24 = N4 Marginal Revenue at R = N24 - N28 = -N4 Total Cost at S = N25 + Ni = N26 Marginal cost at T = N16 - N8 = N8 Marginal cost at U = N25 - N25 = NO (b) The profit is maximized at output 4kg of yams when MC = MR (c) At output 5kg, Profit = TR - TC = N30 - N25 = N5 (d) Marginal cost (MC) begins to rise from output
