Question 8 - Profit maximisation concepts [10 marks] (a) Complete Table 1 (below) bycalculating: (i) Marginal Cost (Column III)(2marks) (ii) Total Revenue (Column V)(2marks) (iii) Marginal Revenue (Column VI) (2marks)

Put your calculated numbers for Cells A to S in the answer box below. To save time, you do not need to label A = 28; B = 12; C = ; etc.

Simply write: 28; 12; etc. Table 1:

I Quantity (Q)	II Total Cost (TC)	III Marginal Cost (MC)		IV Average Revenue (Price)	V Total Revenue (TR)	VI Marginal Revenue (MR)
1	56			80	[G]
1.5		[A]				[N]
2	84			70	[H]
2.5		[B]				[O]
3	96			60	[I]
3.5		[C]				[P]
4	104			50	[J]
4.5		[D]				[Q]
5	120			40	[K]
5.5		[E]				[R]
6	156			30	[L]
6.5		[F]				[S]
7	224			20	[M]

(b) From Table 1 above,theprofit maximising quantity ofoutputis4 units(if the numbersfor MC and MRhad been graphed). Given this output, calculate the following:

(i) Priceat a profitmaximisingoutput: (1 mark)

(ii) ATC(TC / Q)at a profitmaximisingoutput: (1 mark)

(iii) Profit perunitof output(Price -ATC)at a profitmaximisingoutput: (1 mark)

(iv) Total Profitattheprofit maximisingoutput: (1 mark)