In Figure 6.5, what rate of output

(a) Maximizes total revenue?

(b) Maximizes profit per unit?

(c) Maximizes total profit? (Choose the higher level of output.)

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$18 Marginal cost 16 p = MC Profits decreasing (p < MC) 14 Price 12 Profits increasing (p > MC) 10 Profit-maximizing rate of output 4 МCв 2 3 4 5 6. QUANTITY (baskets of fish per hour) PRICE OR COST (per basket) (1) (4) (7) (3) (5) (6) Number Total Total Revenue Cost Marginal Total Profit of Baskets (per Hour) Price Price Cost $10.00 15.00 -$10.00 - 2.00 + 4.00 + 8.00 + 8.00 $13.00 $13.00 $13.00 13.00 13.00 13.00 13.00 $ 5.00 13.00 26.00 22.00 7.00 3 4 13.00 39.00 31.00 9.00 44.00 13.00 13.00 52.00 13.00 65.00 61.00 + 4.00 17.00 ABC DEF