A firm's marginal profit can be defined as the change in its profit when output increases by one unit.

a. Compute the marginal profit for each change in Ned's Beds' output in Table 1.

b. State a complete rule for finding the profit maximizing output level in terms of marginal profit. suppose Ned can sell all the beds he wants at a price of $275 per bed.

a. What will Ned's MR curve look like?

b. In Table 1, how would you change the numbers in the marginal revenue column to reflect the constant price for beds?

c. Using the marginal cost and new marginal revenue numbers in Table 1, find the number of beds Ned should sell.