Question

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

Price (₹)	0	1	2	3	4	5	6	7	8	9	10
TC : (₹)	5	15	22	27	31	38	49	63	81	101	123

Answer 1

Output	TC	TR = unit x price	Total profit = TR + TC
0	5	0 x 10 = 0	0 - 5 = -5
1	15	1 x 10 = 10	10 - 15 = -15
2	22	20	20 - 22 = -2
3	27	30	30 - 27 = 3
4	31	40	40 - 31 = 9
5	38	50	50 - 38 = 12
6	49	60	60- 49 = 11
7	63	70	70 - 63 = 7
8	81	80	80 - 81 = -1
9	101	90	90 - 101 = -11
10	123	100	100 - 123 = -23