The total cost of production at different output levels for a firm are tabulated below- What is the profit-maximizing level of output at a market price of Rs10 - begin array - c - c - Whine Q - TC Rs IWhline 1 - 15 Whline2 - 22 Whline 3 - 27 IIVhline 4 - 31 Whline 5 - 38 lilhline6 - 49 11 7 - 63 Whline array A- 4B- 1C- 5D- 6

The correct option is C 5 Let us add the MC column to the table [ Q amp; TC (Rs) amp; MC (Rs); 1 amp; 15 amp; 15; 2 ...

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Standard XI

Economics

Building the Supply Curve

The total cos...

Question

The total cost of production at different output levels for a firm are tabulated below. What is the profit-maximizing level of output at a market price of Rs 10?

$\begin{matrix} Q & T C (R s) 1 & 15 2 & 22 3 & 27 4 & 31 5 & 38 6 & 49 7 & 63 \end{matrix}$

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Solution

The correct option is C
5

Let us add the MC column to the table

$\begin{matrix} Q & T C (R s) & M C (R s) 1 & 15 & 15 2 & 22 & 7 3 & 27 & 5 4 & 31 & 4 5 & 38 & 7 6 & 49 & 11 7 & 63 & 14 \end{matrix}$

At an output level of 5, MC =7 < P=10
At an output level of 6, MC =11 > P=10
Hence, the profit is maximum at an output level of 5 because the 6th unit will incur a loss.

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Q. The following table shows the total cost schedule of a competitive firm. It is given that the price of the good is Rs 10. Calculate the profit at each output level. Find the profit maximising the level of output.

Quantity Sold	TC (Rs)
0	5
1	15
2	22
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Q. The following table shows the total cost schedule of a competitive firm. It is given that the price of the good is

R s . 10

. Calculate the profit at each output level. Find the profit maximising level of output.

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

Calculate total variable vost and total cost from the following cost schedule of a firm whose fixed costs are Rs. 10.

$\begin{matrix} O u t p u t (U n i t s) & 1 & 2 & 3 & 4 M a r g i n a l C o s t (R s .) & 6 & 5 & 4 & 6 \end{matrix}$

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The total cost of production at different output levels for a firm are tabulated below. What is the profit-maximizing level of output at a market price of Rs 10? QTC (Rs)115222327431538649763

The correct option is C 5 Let us add the MC column to the table QTC (Rs)MC (Rs)1151522273275431453876491176314 At an output level of 5, MC =7 < P=10 At an output level of 6, MC =11 > P=10 Hence, the profit is maximum at an output level of 5 because the 6th unit will incur a loss.

The total cost of production at different output levels for a firm are tabulated below. What is the profit-maximizing level of output at a market price of Rs 10?

$\begin{matrix} Q & T C (R s) 1 & 15 2 & 22 3 & 27 4 & 31 5 & 38 6 & 49 7 & 63 \end{matrix}$