Final answer:
The student must calculate total revenue, marginal revenue, total cost, and marginal cost for various output levels for AAA Aquarium Co., and identify the profit-maximizing output. A table should be created to compare these figures, and economic curves should be sketched to aid in visualization.
Step-by-step explanation:
The question pertains to calculating various financial figures like total revenue, marginal revenue, total cost, and marginal cost for AAA Aquarium Co. that sells aquariums. Additionally, it deals with determining the profit-maximizing output quantity and sketching the relevant economic curves.
Here's an example of how the table might look for the AAA Aquarium Co., though we cannot complete it without the provided production data:
Total Revenue (TR): Price per aquarium × Quantity sold
Total Cost (TC): Fixed Costs + Total Variable Costs
Marginal Revenue (MR): Change in TR / Change in Quantity
Marginal Cost (MC): Change in TC / Change in Quantity
Profit is maximized where Marginal Cost (MC) equals Marginal Revenue (MR). To determine this, you need to compare MR and MC at each output level and look for the quantity where MR just exceeds MC before becoming less than MC.
Diagrams illustrating TR and TC curves, as well as MR and MC curves, are essential visual aids in understanding the relationship between cost, revenue, and output level, but actual sketches are beyond the limitations of this text response.