Please answer the questions below

Question

Based on the firm’s production costs computed in quiz #10 fill out the rest of the table below by computing the firm’s total revenue, marginal revenue and profits at the given rates of output, assuming that it could sell it all in purely competitive market at a price of $54 per unit. Show detailed calculations for the output rates of Q = 16 and Q = 40.

Output (Q)	FC ($)	VC ($)	TC ($)	Price ($)	TR ($)	MR ($)	Profit ($)	Profit/Unit ($)
0	540	0	540	54
16	540	640	1,180	54
40	540	1,520	2,060	54

At Q = 16 units:

Total Revenue (TR) = 

Marginal Revenue (MR) = 

Profit (π) = 

Per Unit Profit (π/unit) = 

At Q = 40 units: 

Total Revenue (TR) = 

Marginal Revenue (MR) = 

Profit (π) = 

Per Unit Profit (π/unit) = 

Answer 1

To compute the total revenue for Q=16, we would take price (54 dollars) times 16 units sold to get 16*54= 864 dollars of revenue. To compute the marginal revenue, since we previously earned 0 revenue when we sold 0 units, we would simply take 866/ 16 units to get an increase of 54 dollars of revenue per unit. This is no coincidence- when a firm faces a constant price, marginal revenue will always equal price. To get profit, take revenue minus cost. Total cost is 1180, so we earn 864-1180 = -316 dollars of profit , or a loss of 316 dollars. Per unit, this is -316/16 = -19.75. The calculations are identical for Q=40- see if you can do it now!