Question

The owner of ProPhone has charted the company's marginal revenue and marginal cost for its latest line of smartphones, the Blazer. Use the chart to calculate the company's profit. If ProPhone sells four phones, the company will
a. break evenb. lose moneyc. maximize profitsd. make some profit

Answer 1

Answer: I found the Chart

Quantity / Price  / Total Revenue / Marginal Revenue / Total Cost / Marginal Cost

0       220              0                      0                          90            0  

1       200            200             200                 170           80  

2       180             360             160                 200           30  

3       160             480             120                290           90  

4       150             600             120                340           50  

5      140             700             100                  400           60  

6       135              810              90                 500          100  

7      130              910             100                 620           120

Explanation: The correct answer is "d. make some profit".

Because while he is getting a little profit (600 - 340 = 260), he would maximize his earnings if he sold 6 units, (810 - 500 = 310).