Mo owns a Coffee truck which operates in a perfectly competitive industry. He faces the following cost schedule per day (notice that his coffee maker makes ten cups at a time, and that he has a daily fixed cost of operating the truck). The market price of a cup of coffee is $2.00. Suppose that Mo produces at the profit maximizing/loss minimizing level Q*. How much profit/loss does he earn?
Q
TC
0
$30
10
$50
20
$63
30
$73
40
$78
50
$95
60
$120