Answer:
the following table shows the profits generated by each output quantity, assuming selling price is Rs40. Since marginal costs of production are lower than selling price, the more you sell, the higher your profit. Profit is maximized at 1,000 units = Rs35,960
Explanation:
output variable costs fixed costs total revenue profits
0 00 620 0 (620)
100 280 620 4,000 3,100
200 480 620 8,000 6,900
300 640 620 12,000 10,740
400 820 620 16,000 14,560
500 1,040 620 20,000 18,340
600 1,300 620 24,000 22,080
700 1,620 620 28,000 25,760
800 2,020 620 32,000 29,360
900 2,620 620 36,000 32,760
1000 3,420 620 40,000 35,960