3 $28 $20 $35 $20+$35=$55

$35/3=$11.67 $55/3=$18.33

4 $28 $20 $52 $20+$52=$72

$52/4=$13.00 $72/4=$18.00

5 $28 $20 $80 $20+$80=$100 $80/5=$16.00 $100/5=$20.00

($40−$20)/

(1−0)= $20

($45−$40)/

(2−1)= $5

($55−$45)/

(3−2)= $10

($72−$55)/

(4−3)= $17

($100−$72)/

(5−4)= $28

TABLE 8.8

Step 2. Determine the market price that the firm receives for its product. Since the firm in perfect competition

is a price taker, the market price is constant. With the given price, calculate total revenue as equal to price

multiplied by quantity for all output levels produced. In this example, the given price is $28. You can see that in

the second column of Table 8.9.

Quantity Price Total Revenue (P × Q)

0

1

2

3

4

5

$28

$28×0=$0

$28

$28×1=$28

$28

$28×2=$56

$28

$28×3=$84

$28

$28×4=$112

$28

$28×5=$140

TABLE 8.9

Step 3. Calculate profits as total cost subtracted from total revenue, as Table 8.10 shows.
{"total_pages": 597, "uploaded_via": "batch_uploader", "producer": "Prince 14.2 (www.princexml.com)", "title": "Principles of Microeconomics 3e", "creationdate": "2022-12-07T14:15:44-06:00", "file_hash": "830b81f41611ac67a490444dbb5d6aed292224606965b06965b914443c93331a", "source_file": "downloads\\business\\economics\\Microeconomics3e.pdf", "file_name": "Microeconomics3e.pdf", "upload_timestamp": "2026-02-07T15:24:38.309401", "moddate": "2022-12-07T14:23:05-06:00", "file_size_mb": 26.99, "creator": "PDFMiner", "source": "downloads\\business\\economics\\Microeconomics3e.pdf", "batch_upload": true, "file_type": ".pdf"}