Find the profit maximising level of output.
Quantity Sold (Units) Total Revenue (Rs.) Marginal Cost (Rs.)
$1$
$2$
$3$
$4$
$5$ $12$
$26$
$34$
$40$
$42$ $15$
$9$
$6$
$2$
$3$

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Solution

Quantity Sold (Units) Total Revenue (Rs.) Marginal Cost (Rs.) Total Cost (Rs.) Profit $(π = T R - T C) (R s .)$
$1$
$2$
$3$
$4$
$5$ $12$
$26$
$34$
$40$
$42$ $15$
$9$
$6$
$2$
$3$ $15$
$24$
$30$
$32$
$35$ $- 3$
$2$
$4$
$8$
$7$
Profit is maximised when the output level is $4$ units because here, profit is maximum, i.e., $8$ and after this starts declining.
Profit is maximim at $4 t h$ unit.

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Price (Rs.)	Output (Units)	Total Revenue (Rs.)	Marginal Revenue (Rs.)
$7$ - - $1$	- $2$ $3$ -	$7$ $10$ - -	- - $- 1$ $- 5$

R s . 10

Quantity Sold	$0$	$1$	$2$	$3$	$4$	$5$	$6$	$7$	$8$	$9$	$10$
$T C (R s .)$	$5$	$15$	$22$	$27$	$31$	$38$	$49$	$63$	$81$	$101$	$123$

Output (Units)	Total Variable Cost (Rs.)	Average Variable Cost (Rs.)	Marginal Cost (Rs.)
$1$ $2$ - $4$	- $20$ - $40$	$12$ - $10$ -	- - $10$ -

Quantity Sold (Units)	Total Revenue (Rs.)	Total Cost (Rs.)
$5$ $6$ $7$ $8$ $9$ $10$	$15$ $20$ $25$ $30$ $35$ $40$	$18$ $22$ $26$ $27$ $32$ $38$

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