The following table shows the total cost schedule of a competitive fir – InterviewSolution

1.

The following table shows the total cost schedule of a competitive firm. It is given that the price of the good is ₹15. Output TC(₹)051152203304355456557808100(a) Calculate profit at each level of output. (b) Find the profit maximising level of output.

Answer»

Output	TC(₹)	TR	Profit(TR - TC)
0	5	0	-5
1	15	15	0
2	20	30	10
3	30	45	15
4	35	60	25
5	45	75	30
6	55	90	35
7	80	105	25
8	100	120	20

(b) The profit maximising level of outputs is 6, where the difference between TR and TC is highest.

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