On a TR vs. TC basis, what’s the optimum output level of the firm and explain wh
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On a TR vs. TC basis, what’s the optimum output level of the firm and explain why
On a marginal revenue vs. marginal cost basis, what’s the optimum output level of the firm and explain why
Econ 510 Module 5 Update-Googl × Book.xlsx × w Assignments-18FALL2 1011 https://twolfco ostatepueblo my sharepoint com : personal d freed co ostate pueblo edu ifi Excel Online Freed, Jordan D. Documents FILE HOME INSERT DATAREVIEWVIEW Tell me what you want to do layouts/15/Doc.aspx?sourcedoc=967B9a066550-8132-4 35-90e5-9a1ddfada0c7%7D&action-default&uid-%7B9A066550-8132-4F. Freed, Jordan D. OPEN IN EXCEL Guest Contributor is also editing· Share Calibri 11 A A Wrap Text AutoSum . 7 E Copy Paste Conditional Forms Format ormattingas Table- Insert Delete Format ak L·. . $ . % , '68 Sort& Find & Filter- Select 1 u Merge & Center. Clear. Format Painter Clipboard Alignment Tables Editing 1 Q Price/u(S] TVC Total Revenue Profit VC/u FC/u MR MC Marginal Profit 0-100 #DIV/0! #DIV/O! n/a 130 100 140 27.5 45 175 33.3 210 240 290 350 420 280 350 420 490 560 140 180 200 210 210 200 180 150 16.7 14.3 100 100 100 100 100 100 27.1 31.3 11.1 590 590 49.2 8.3 Sheet2 HELP IMPROVE OFFICE 5:07 PM 9/22/2018 Start | 40 20 10 0. 70 80 90 00 0 30 55 75 90 10 40 90 50 20 00 90 90 0123456789111 0123 45678901234567890 12 1-1-1 1 1111112|22222222 2 3-3-3- 123456 7 8 9Explanation / Answer
on the basis of TR and TC , the optimal level of output will be 8 units becasue , at 8 units, total revenue is at highest level and the firm is experiences maximum profit of 210 .
on the basis of MR and MC, the optimal level of output will be 9 units because, as long as the firm marginal cost is less than marginal revenue, the firm increase its output to increase its revenue . at 8 units of output, the firm MC is 60 which is less than MR . so firm increase its output to a level where Marginal revenue is equal to marginal cost. so. at 9 units of output marginal revenue is equal to marginal cost. at this output the firm is earning maximum profit.
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