demand curve for treatments. The third column shows its total costs. For each level of output, calculate

total revenue, marginal revenue, average cost, and marginal cost. What is the profit-maximizing level of

output for the treatments and how much will the firm earn in profits?

Price

Quantity

TC

$25.00 0

$24.00 10

$23.00 20

$22.50 30

$22.00 40

$130

$275

$435

$610

$800

$21.60 50

$1,005

$21.20 60

$1,225

TABLE 10.5

20. Mary and Raj are the only two growers who provide organically grown corn to a local grocery store. They

know that if they cooperated and produced less corn, they could raise the price of the corn. If they work

independently, they will each earn $100. If they decide to work together and both lower their output, they

can each earn $150. If one person lowers output and the other does not, the person who lowers output will

earn $0 and the other person will capture the entire market and will earn $200. Table 10.6 represents the
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