Q (kg)
Fixed Cost
Total Cost (TFC+TVC)
Total Revenue
Profit/Loss (TR – TC)
MC (change in total cost/change in quantity(Q(kg))
MR (change in revenue/change in quantity
0
$3,000
$4.8
1,200
$3,000
4.8
2,400
$3,000
4.8
3,600
$3,000
4.80
4,800
$3,000
4.80
6,000
$3,000
4.80
7,200
$3,000
4.80
8,400
$3,000
4.80
9,600
$3,000
4.80
10,800
$3,000
4.80
12,000
$3,000
4.80
13,200
$3,000
4.80
a) Complete the schedule above (1/2 mark for each correct column x 4 = 2 marks)
b) How much (between what two optimising quantity levels) should this firm produce to maximise profit/minimise loss (1/2 mark) and how much would its profit/loss be? (1/2 mark) Explain using the concepts of MR and MC.
