Profit maximization

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.

$Q$ ‍	Marginal cost $(M C)$ ‍	Marginal Revenue $(M R)$ ‍
$1000$ ‍	$$ 1.00$ ‍	$$ 3.00$ ‍
$2000$ ‍	$$ 1.50$ ‍	$$ 3.00$ ‍
$3000$ ‍	$$ 2.00$ ‍	$$ 3.00$ ‍
$4000$ ‍	$$ 2.50$ ‍	$$ 3.00$ ‍
$5000$ ‍	$$ 3.00$ ‍	$$ 3.00$ ‍
$6000$ ‍	$$ 3.50$ ‍	$$ 3.00$ ‍
$7000$ ‍	$$ 4.00$ ‍	$$ 3.00$ ‍
$8000$ ‍	$$ 4.50$ ‍	$$ 3.00$ ‍
$9000$ ‍	$$ 5.00$ ‍	$$ 3.00$ ‍

How many greeting cards should this firm produce to make the highest possible profit?

Microeconomics

Course: Microeconomics > Unit 6

Problem