544
1 point: $18
1 point: $7
1 point: $36 - $29 or TR - TC
1 point: 5 units
1 point: The optimal output rule states that profit is maximized when MC = MR. Here, MC never exactly equals MR. When this occurs, the firm should produce the largest quantity at which MR exceeds MC. At a quantity of 5, MC = $16 and MR = $18. For the sixth unit, MC = $22 and MR = $18, and because MC > MR, the sixth unit would add more to total cost than it would to total revenue, and it therefore should not be produced.