Answer:
The answer is "$ 140".
Explanation:
The company produces the quantity MR = MC and if there is no quantity MR = MC, the amount throughout the case MR is just greater and closest to MC to maximize profit.
Here MR = marginal income and marginal cost =MC
MR =![\frac{Overall \ sales \ change}{Quantity\ shift}](https://tex.z-dn.net/?f=%5Cfrac%7BOverall%20%5C%20sales%20%5C%20change%7D%7BQuantity%5C%20shift%7D)
In the above table, we could see that the amount MR = MC = 8 isn't available. Thus it produces the amount where the MR
is only larger but nearest to MC.
25 unit MR =![\frac{TR \ change}{Quality \ change}](https://tex.z-dn.net/?f=%5Cfrac%7BTR%20%5C%20change%7D%7BQuality%20%5C%20change%7D)
![= [TR (when \ Q = 25) -TR \frac{(when \ Q = 20)]}{(25 - 20)}](https://tex.z-dn.net/?f=%3D%20%5BTR%20%28when%20%5C%20Q%20%3D%2025%29%20-TR%20%5Cfrac%7B%28when%20%5C%20Q%20%3D%2020%29%5D%7D%7B%2825%20-%2020%29%7D)
![= \frac{(450 - 400)}{5}= 10](https://tex.z-dn.net/?f=%3D%20%5Cfrac%7B%28450%20-%20400%29%7D%7B5%7D%3D%2010)
(Minimum and superior to MC)
MR of 30 units
, similarly MR of 30 units.
Consequently, 25 units were produced and 12.5 units were produced.
Currently, XYZ breaks the agreement and produces three more so thus maximum quantity produced on a market = 25 + 5 = 30 and through the above table they see which if quantity = 30, price = 16.
XYZ produces 12.5 + 5 = 17.5 output from 30 units.
Cost Total = TVC + TFC
Total TVC = Total Cost for Variable TFC = Maximum Cost of TFC = 0.
If MC is stable, TVC = MC
Q = 8
q, where Q = exposed to the real produced and XYZ produces 17.5 in this case.
Total expenditure (TC+) is TVC = TFC = 8
17.5.
Take control = TR - TC = TC = 16
17.5 - 8
17.5 = 150.
So the business XYZ is profiting = 140