The thing to do is work out total cost and total revenue.
Total cost = ATC *Q.
- 150
- 154
- 156
- 156
Total Revenue = AR *Q.
- 260
- 264
- 276
- 273
Therefore Total Profit = TR – TC
- 260-150 = 110
- 264-154 = 110
- 276-156 = 120 Profit maximised
- 273-156 = 117
The thing to do is work out total cost and total revenue.
Total cost = ATC *Q.
Total Revenue = AR *Q.
Therefore Total Profit = TR – TC