Marginal Revenue and Marginal Cost 43
FIGURE 2.7
Total Profit
and Marginal Profit
The point of maximum
total profit in part (a)
corresponds to the
point at which
marginal profit is zero
in part (b). In each case,
the firm’s optimal
output is 3.3 lots.
150
100
50
0
–50
–100
01234 56
–150
100
50
0
–50
–100
01234 56
(a) Total Profit (Thousands of Dollars)
Profit
Marginal profit
Quantity (Lots)
(b) Marginal Profit
c02OptimalDecisionsUsingMarginalAnalysis.qxd 8/17/11 5:17 PM Page 43