Final answer:
To calculate the profit maximizing quantity, analyze the total revenue and total cost at each output level. Plot the total revenue and total cost curves and determine the output level where marginal revenue equals marginal cost. Then, provide the corresponding selling price per unit as the answer to your question.
Step-by-step explanation:
To calculate the profit maximizing quantity, we need to analyze the total revenue and total cost at each output level. We can calculate the total revenue by multiplying the selling price per unit by the quantity sold. The marginal revenue can be calculated by finding the change in total revenue when one more unit is produced.
The total cost includes both fixed costs and variable costs. The marginal cost can be calculated by finding the change in total cost when one more unit is produced.
Once we have the total revenue, marginal revenue, total cost, and marginal cost for each output level, we can plot them on separate diagrams as curves. The profit maximizing quantity is the output level where marginal revenue equals marginal cost.