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. How many phones will ProPhone need to sell to maximize profit?
Quantity of Jackets | Price (in whole dollars) | Total Revenue | Marginal Revenue | Total Cost | Marginal Cost | Profit (or loss) |
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 |