Compute the marginal revenue at 30 Blivets Again your fixed

Compute the marginal revenue at 30 Blivets.

Again, your fixed costs are $200. What is the maximum possible profit for selling Blivets? Include units.

Marginal Revenue : The Marginal Revenue at q items is the increment in Revenue that comes when we increase q by 1 item.

At q= 30 billets: On graph of TR take one point at 30 blivet and another may be 40 blivet.Draw

a secant between the two and calculate = ( change in revenue/change in qty.) = ( 580-450)/(40-30)

= $ 13 per blivet.

Maxium Possible Profit can be found at the point where there is maximum possible vertical

distance between the TR graph and VC graph.

We can see at q= 50 blivet maximum gap between the two graphs.

So, Maximum possible profit = 680 - ( 300+ 200) = 680 -500 = $180

(Dont forget to add the fixed cost of 200$ to the variable cost)