A firms marginal profit can be defined as the change in its profit when output increases by

A firm’s marginal profit can be defined as the change in its profit when output increases by one unit.

a. Compute the marginal profit for each change in Ned’s Beds’ output in Table.

b. State a complete rule for finding the profit maximizing output level in terms of marginalprofit.

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Output (Troy Ounces of (per Troy Tota Marginal Total Marginal (7) Gold per Day) Ounce) Revenue Revenue Cost Cost Profit -$1,100 $900 -$1,200 $400 2 800 $ 500 300 $1,000 $500 6 $1,300 $1,400 $ 900 8 $1,100 $1,000 $,300 10 $ 500