Final answer:
The total revenue, marginal revenue, total cost, and marginal cost for each output level are calculated. The profit maximizing quantity is determined by finding the quantity at which marginal revenue equals marginal cost.
Step-by-step explanation:
In order to calculate total revenue, we multiply the quantity of units sold by the price per unit. For example, for one unit, the total revenue is $72. The total revenue for two units is $144, for three units is $216, for four units is $288, and for five units is $360. Similarly, the marginal revenue can be calculated by finding the change in total revenue when an additional unit is sold. For example, the marginal revenue of selling the second unit is $72, of selling the third unit is $72, of selling the fourth unit is $72, and of selling the fifth unit is $72.
The total cost can be calculated by summing the fixed costs and the variable costs. For each quantity, the total cost is as follows: for one unit, it is $164, for two units, it is $184, for three units, it is $214, for four units, it is $284, and for five units, it is $370. The marginal cost can be calculated by finding the change in total cost when an additional unit is produced. For example, the marginal cost of producing the second unit is $20, of producing the third unit is $30, of producing the fourth unit is $70, and of producing the fifth unit is $86.