Answer:
The question is incomplete. The complete is given below
OUTPUT PRICE MR TC MC
1 100 100 100 30
2 90 80 63 26
3 80 60 52.67 32
4 70 40 49.5 40
5 60 20 49.6 50
6 50 0 50 52
7 40 -20 52.29 66
8 30 -40 55.75 80
9 20 -60 60.67 100
The total revenue is $280
Explanation:
Profit is maximized at the level of output where marginal revenue (MR) is equal marginal cost (MC).
Marginal revenue is the extra revenue made from selling one additional unit of a product. It is the increase in total revenue as result of selling one more unit. It is given in the third column above.
Marginal cost: It is the increase in total cost as a result of producing extra one unit- it is given in the last column
Profit maximizing-output: The optimal level of output where marginal revenue is equal to marginal cost. It is the ascertained to be 4 under the first column above. At this level MR $40 = MC $40
Profit maximizing price: The selling price at the profit-maximizing output. It is $70 here.
Total revenue that maximized profit= profit-maximizing price × Profit maximizing-output
$70 × 4= $280
