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 (Rs.)
$0$	$0$	$5$
$1$	$5$	$7$
$2$	$10$	$10$
$3$	$15$	$12$
$4$	$20$	$15$
$5$	$25$	$23$
$6$	$30$	$33$
$7$	$35$	$40$

Answer 1

Quantity Sold	$TR(Rs.)$	$TC(Rs.)$	$Profit(=TR-TC)(Rs.)$	$MarketPrice(=\frac{TR}{Q})(Rs.)$
$0$ $1$ $2$ $3$ $4$ $5$ $6$ $7$	$0$ $5$ $10$ $15$ $20$ $25$ $30$ $35$	$5$ $7$ $10$ $12$ $15$ $23$ $33$ $40$	$-5$ $-2$ $0$ $3$ $5$ $2$ $-3$ $-5$	- $5$ $5$ $5$ $5$ $5$ $5$ $5$