Profit Maximization... Continued

It is evident from the table that profits are maximized when 3.74 units are produced with approximately TR=3550 and TC = 2850 and therefore economic profit TR-TC = 700. Note that this is an abnormal profit since it is above total explicit and implicit costs.

This information can be represented graphically as shown in Figure 3.3 below derived from Table 3.3 above.