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