Practicing Success
Practicing Success
CUET Preparation Today
| The total cost of a firm at different output levels of 1 unit, 2 units, 3 units, 4 units, 5 units, 6 units, and 7 units of output sold is Rs. 5, Rs. 15, Rs. 22, Rs. 27, Rs. 31, Rs. 38 and Rs. 49. Price of commodity is Rs. 10. What is the profit maximizing level of output? |
5 units 4 units 6 units 7 units |
| 5 units |
| Profit is TR minus TC and TR at output levels of 1 unit, 2 units, 3 units, 4 units, 5 units, 6 units, 7 units is Rs. 10, Rs 20, Rs 30, Rs 40, Rs 50, Rs 60, Rs 70 respectively and TC is given as Rs. 5, Rs. 15,Rs. 22, Rs.27, Rs. 31, Rs. 38 and Rs. 49 respectively. So profit at output levels 1, 2, 3, 4,5, 6, 7 is Rs. -5, Rs. -5, Rs. -2, Rs. 3, Rs. 9, Rs. 12, Rs. 11, Rs. 7 respectively. |
