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Profit maximization

AP.MICRO: CBA‑2 (EU), CBA‑2.D (LO), CBA‑2.D.1 (EK)

Problem

Blammo produces and sells greeting cards. The marginal cost of producing different quantities of greeting cards, as well as the marginal revenue earned, is given in the table below.
QMarginal cost left parenthesis, M, C, right parenthesisMarginal Revenue left parenthesis, M, R, right parenthesis
1000dollar sign, 1, point, 00dollar sign, 3, point, 00
2000dollar sign, 1, point, 50dollar sign, 3, point, 00
3000dollar sign, 2, point, 00dollar sign, 3, point, 00
4000dollar sign, 2, point, 50dollar sign, 3, point, 00
5000dollar sign, 3, point, 00dollar sign, 3, point, 00
6000dollar sign, 3, point, 50dollar sign, 3, point, 00
7000dollar sign, 4, point, 00dollar sign, 3, point, 00
8000dollar sign, 4, point, 50dollar sign, 3, point, 00
9000dollar sign, 5, point, 00dollar sign, 3, point, 00
How many greeting cards should this firm produce to make the highest possible profit?
Choose 1 answer:
Choose 1 answer: