Question

The following table shows the total revenue and total cost schedules of a competitive firm. Calculate the profit at each output level. Determine also the market price of the good.

Quantity Sold	TR (Rs)	TC (Rs)	Profit
0	0	5
1	5	7
2	10	10
3	15	12
4	20	15
5	25	23
6	30	33
7	35	40

Answer 1

Quantity Sold	TR (Rs)	TC (Rs)	Profit	AR =
0	0	5	0 − 5 = −5	−
1	5	7	5 − 7 = −2
2	10	10	10 − 10 = 0
3	15	12	15 − 12 = 3
4	20	15	20 − 15 = −5
5	25	23	25 − 23 = 2
6	30	33	30 − 33 = −3
7	35	40	35 − 40 = −5