Find out the maximum profit position of producer by comparing TC and TR on the basis of the following data. Also verify using MR and MC approach.

Find out the maximum profit position of producer by comparing TC and T

1.	Find out the maximum profit position of producer by comparing TC and TR on the basis of the following data. Also verify using MR and MC approach.
Answer» Solution : Hint. TR = Output `XX` AR and TC = Output `xx` AC. Thus, PRODUCER will maximize PROFIT (Rs.6) when he PRODUCES 3 units of output. ALSO at 3 units of output, MR = MC (Rs.6) and MC gt MR after this level of output.