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Marginal Revenue and Marginal Cost Practice Question

From , former About.com Guide

5 of 6

Marginal Revenue and Marginal Cost Practice Question - Part 4
Marginal Revenue and Marginal Cost - 5

Marginal Revenue and Marginal Cost Data - Image 5

Profit at every quantity level

The standard calculation for profit is simply:

Total Revenue - Total Costs

If we want to know how much profit we will receive if we sell 3 units, we simply use the formula:

Profit(3 units) = Total Revenue (3 units) - Total Costs (3 units)

Once you do that for every level of quantity, your sheet should look like the one below.

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