Assume that the following pries of good \( Y \) and the quantities at these prices. The total fixed cost of the firm is 6,000 and the cost of direct materials is 0.80 per unit and that of direct labor is 1.10 per unit. Complete the following table
\begin{tabular}{|l|l|l|l|l|l|}
\hline Price & \begin{tabular}{l}
Output(quantity \\
purchased)
\end{tabular} & TR & TVC & TC & Profit \\
\hline 5.50 & 0 & & & \\
5.00 & 10,000 & & & \\
4.50 & 20,000 & & & \\
4.00 & 60,000 & & & \\
3.50 & 90,000 & & & \\
3.00 & 150,000 & & & \\
2.50 & 180,000 & & & \\
2.00 & 200,000 & & & \\
\hline
\end{tabular}
1. Which is the best price? Justify
2. Plot the TR and TC curve. Identify the point of maximum profit
