The document provides a table showing the quantity of output, total cost, and instructions to calculate total revenue, profit, marginal revenue, and marginal cost for a perfectly competitive firm. The firm can sell all output at $9 per unit. The optimal output level is the quantity where marginal revenue equals marginal cost, which maximizes the firm's total profit.

1. The table below gives the quantity of output and the total cost for a perfectly competitive firm
that can sell all of its output at $9 per unit. In a new column, calculate the firm's total revenue at
each quantity. In a new column, calculate the firm's total profit. What is the firm's profit
maximizing level of output? In new columns, calculate the firm's marginal revenue and
marginal cost. What is the firm's profit maximizing level of output?
Solution
Explanation:
Quantity (Units) = (i)
Total Sale Revenue = { (i)*9 Per Unit} = (ii) (in $)
Total Cost (as Given ) (iii)
(in $)
Total Profit (ii)-(iii) = (iv) (in $)
Marginal Revenue = (Total revenue at existing level
Quantity (Units) = (i)
Total Sale Revenue = { (i)*9 Per Unit} = (ii) (in $)
Total Cost (as Given ) (iii)
(in $)
Total Profit (ii)-(iii) = (iv) (in $)
Marginal Revenue = (Total revenue at existing level