Question

At which level of production does the company make the least profit?



the first pair of cleats
the second pair of cleats
the third pair of cleats
the fourth pair of cleats

Answer 1

I don't see the cost/revenue numbers or a graph — could you paste the table or image that shows price, total cost, or marginal cost/revenue for 1–4 pairs? I need those to compute profits.

If you want to do it yourself, here's how:

- For each production level (1st, 2nd, 3rd, 4th pair) compute total revenue (TR) and total cost (TC).
- TR = price per pair × quantity (unless the price changes with quantity).
- If you only have marginal costs (MC) for each pair, get TC by summing the marginal costs up to that quantity (TC at Q = MC1 + MC2 + ... + MCQ).
- Profit = TR − TC for each level.
- The level with the smallest Profit value (most negative or least positive) is the one with the least profit.

Example:
- Price = $50 per pair.
- MCs: MC1 = $30, MC2 = $40, MC3 = $55, MC4 = $45.
- TC1 = 30, TC2 = 30+40 = 70, TC3 = 125, TC4 = 170.
- TR1 = 50, TR2 = 100, TR3 = 150, TR4 = 200.
- Profits: Π1 = 20, Π2 = 30, Π3 = 25, Π4 = 30 → least profit at the 1st pair (Π1 = 20).

Send the data you have and I’ll compute which pair yields the least profit.