Determining amount of profit and loss

Reference no: EM1371238

Johnston production is the price taker which utilizes this cost structure in the short run:

Output Marginal Cost
1 $10
2 $5
3 $12
4 $23
5 $40

Johnston Production's fixed cost is $20 and the market price of each product sold is $25. Determine the output level that Johnston production should use for maximizing profit. Determine the amount of profit or loss that Johnston production will experience in the short run.

Reference no: EM1371238

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