Egt Task 1
Quantity
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15

TR

TC

$0.00
$10.00
$150.00
$30.00
$290.00
$50.00
$420.00
$80.00
$540.00
$120.00
$650.00
$170.00
$750.00
$230.00
$840.00
$300.00
$920.00
$380.00
$990.00
$470.00
$1,050.00
$570.00
$1,100.00
$680.00
$1,140.00
$800.00
$1,170.00
$930.00
$1,190.00 $1,070.00
$1,200.00 $1,220.00

Profit
MR
MC
($10.00)
$0.00
$10.00
$120.00 $150.00
$20.00
$140.00 $140.00
$20.00
$340.00 $130.00
$30.00
$420.00 $120.00
$40.00
$480.00 $110.00
$50.00
$520.00 $100.00
$60.00
$540.00
$90.00
$70.00
$540.00
$80.00
$80.00
$520.00
$70.00
$90.00
$480.00
$60.00 $100.00
$420.00
$50.00 $110.00
$340.00
$40.00 $120.00
$240.00
$30.00 $130.00
$120.00
$20.00 $140.00
($20.00)
$10.00 $150.00

A.
1. Total revenue is found by multiplying output by the price. We also will find the profit amount by subtracting the total cost from the total revenue. From there we look for the largest difference in the Total cost and total revenue which will give us the maximum profit amount.
2. The Marginal Revenue and Marginal Cost approach for profit maximization is found when the marginal revenue equals the marginal costs.
B. To figure marginal revenue we divide the change in total revenue by the change in quantity.
1. The marginal revenue decreases by 10 for each of the widgets that Company A produces.
C. To figure marginal cost we divide the change in total costs by the change in quantity.
1. The marginal cost increases by 10 for each of the widgets Company A produces.
D. Profit maximization occurs at where the marginal revenue and marginal costs are equal to each other. In the given problem for Company A the marginal revenue and marginal costs are equal at 8 widgets and the marginal revenue $80 and marginal costs of $80.
E. If the marginal revenue is greater than