Question: Consider the data for a price-setting firm in the table below. All revenue and cost figures are in expressed in dollars. Quantity 0 2 4

Consider the data for a price-setting firm in the table below. All revenue and cost figures are in expressed in dollars.

Quantity 0 2 4 6 8 10 12 14 16 18
Total Revenue 0 200 380 540 680 800 900 980 1040 1080
Total Cost 70 140 210 280 350 420 490 560 630 700

Using the information above, answer the following questions.

The marginal revenue for the firm of selling the 10th unit of output is Answer dollars.

The marginal cost to the firm of producing the 4th unit of output is Answer dollars.

The firm will maximise profits at an output (quantity) of Answer units.

The price the firm will charge for this level of output will be Answer dollars.

Firms maximise profits at a level of output where

Answer = marginal revenue equals marginal cost

total revenue equals total cost

price equals marginal revenue

price equals marginal cost.

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