P Q TC ATC MC TR MR
0 250 500
1 240 730
2 230 870
3 220 950
4 210 1010
5 200 1090
6 190 1230
7 180 1470
8 170 1850
9 160 2410
calculate maximum profit or minimum loss
a) Loss 100 Rs
b) Loss 60 Rs
c) profit 90 Rs
d) loss 90 Rs
my confusion is which represents loss TR or MR or AR ?? and how to solve ??
P Q TC ATC MC TR MR
0 250 500 2 - 0 -
1 240 730 3 -23 240 - 24
2 230 870 4 -14 460 - 22
3 220 950 4 -8 660 - 20
4 210 1010 5 -6 840 - 18
5 200 1090 5 -8 1000 - 16
6 190 1230 6 -14 1140 - 14
7 180 1470 8 -24 1260 - 12
8 170 1850 11 -38 1360 - 10
9 160 2410 15 -56 1440 - 80
----------- ------------
-191 -216
ATC = TC/Q
MC = HANGE TC/CHANGE TQ
TR = P*Q
MR = CHANGE TR/ CHANGE Q
i know formulas i want to know how can we say it is loss or profit
you sure the question is right???? usually as quantity decreases total cost should decrease but here it is the opposite. where did you get the question?
igot it frm selfassesment quiz
negative marginal return means firm will continue its profit maximum.
however to calculate profit or loss it is just Total Revenue - total Cost so
P Q TC TR Loss
0 250 500 0 500
1 240 730 240 490 (730-240)
2 230 870 460 410 (870-460)
3 220 950 660 290 (950 - 660)
4 210 1010 840 170 (1010 - 840)
5 200 1090 1000 90 (1090 - 1000)
6 190 1230 1140 90 (1230 - 1140)
7 180 1470 1260 210 (1470-1260)
8 170 1850 1360 490 (1850 - 1360)
9 160 2410 1440 970 (2410 - 1440)
90 is the minimum loss so answer is d but the question itself is nonsensical
If it costs 500 for a firm to produce 250 items it will not cost 730 for the firm to produce 240 items(he is paying to reduce the number of items!!!!!!!!!!!)
CAclubindia
