Profit Maximization in Shoe Production

Steps:

• Identify total revenue (TR) and total cost (TC) at each output level from the given data.
• Calculate profit as TR minus TC for outputs 100, 200, 300, and 400.
• Compare profits: highest at 200 units.
• Confirm marginal revenue equals marginal cost near 200 units for optimal output.

Why B is correct:

• Profit is maximized where MR = MC, and calculations show peak profit at 200 units per the profit formula (TR - TC).

Why the others are wrong:

• A: Profit lower than at 200 due to sub-optimal scale before MR=MC.
• C: Profit declines post-200 as MC exceeds MR.
• D: Even lower profit from excessive output increasing average costs.

Not enough information: Detailed TR/TC data not provided here.

Final answer: B