Firm Produces at a Profit

Qty Produced

1

2

3

4

5

6

7

8

9

10

11

12

13

14

160

Cost and Revenue

TC

0

140

120

100

80

60

40

20

TVC

TR

At a quantity of 7 units (from Step 1), total revenue exceeds total cost, so the firm earns a profit.

Profit

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