Managerial Economics 13th Edition by James McGuigan,Charles Moyer,Frederick Harris

Exercise 3

Consider again the total revenue and total cost functions shown in tabular form in the previous problem.
a. Compute the total, marginal, and average profit functions.
b. On a single graph, plot the total profit and marginal profit functions.
c. Determine the output level in the graph and table where the total profit function takes on its maximum value.
d. How does the result in part (c) in this exercise compare with the result in part (d) of the previous exercise
e. Determine total profits at the profit-maximizing output level.