<u>Let's find the profit for each case:</u>
1. Price= $ 10, Quantity= 16, Total Cost: $ 100
Revenue= Price x Quantity = 10 x 16 = $ 160
<u>Profit = Revenue - Total Cost = 160 - 100 = $ 60</u>
2. Price= $ 10, Quantity= 17, Total Cost: $ 105
Revenue= Price x Quantity = 10 x 17 = $ 170
<u>Profit = Revenue - Total Cost = 170 - 105 = $ 65</u>
3. Price= $ 10, Quantity= 18, Total Cost: $ 112
Revenue= Price x Quantity = 10 x 18 = $ 180
<u>Profit = Revenue - Total Cost = 180 - 112 = $ 68</u>
4. Price= $ 10, Quantity= 19, Total Cost: $ 121
Revenue= Price x Quantity = 10 x 19 = $ 190
<u>Profit = Revenue - Total Cost = 190 - 121 = $ 69</u>
5. Price= $ 10, Quantity= 20, Total Cost: $ 132
Revenue= Price x Quantity = 10 x 20 = $ 200
<u>Profit = Revenue - Total Cost = 200 - 132 = $ 68</u>
6. Price= $ 10, Quantity= 21, Total Cost: $ 145
Revenue= Price x Quantity = 10 x 21 = $ 210
<u>Profit = Revenue - Total Cost = 210 - 145 = $ 65</u>
<u>The profit is maximized when the price is $ 10, quantity is 19 and the total cost is $ 121.</u>
<u>Definitions:</u>
<u>1. Price </u>is the amount of money that allows the acquisition or use of a good or service.
<u>2. Total cost </u>is the economic cost that represents the manufacture of a product or the provision of a service.
<u>3. Income </u>is the total amount of money earned or collected.
<u>4. Profit </u>is the amount of money that is earned, after subtracting the total costs.