Daquan Bell Case Summary

Daquan Bell September 29, 2017

Output FC VC TC TR Profit/Loss
0 100 0 100 0 -100
1 100 100 200 150 -50
2 100 180 280 300 20
3 100 300 400 450 50
4 100 440 540 600 60
5 100 600 700 750 50
6 100 780 880 900 20

A. Total Cost (TC) = Fix Cost + Variable Cost
Total Revenue (TR) = Output x price ($150)
Profit/Loss = Total Revenue-Total Cost

B. Output at 4, making the most profit of $60.00
C. $150.00 Market price of the firm. (Does not vary)
D. The Marginal Cost first declines reflecting the increase in Marginal Revenue. (The golden rule applies)