How much is this firm's profit?
Profit = (Price - ATC) × Output
= ($41 - $37.90) × 80
= $3.10 × 80
= $248
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How many broad categories are used by economists to define the GDP?
A) 3 B) 4 C) 6 D) 8
Productive efficiency refers to:
A. Cost minimization, where P = minimum ATC B. Production at a level where P = MC C. Maximizing profits by producing where MR = MC D. Setting TR = TC
John gets paid monthly and pays for everything with cash. When he cashes his check he keeps $200 for food, $100 for utilities, $900 for rent, $50 for transportation, $100 for entertainment and $300 for unexpected expenditures
Which of the following statements is TRUE? A) The transactions demand for money is $1,350, the precautionary demand is $300 and the asset demand is $0. B) The transactions demand for money is $350, the precautionary demand is $1,150 and the asset demand is $150. C) The transactions demand for money is $350, the precautionary demand is $950 and the asset demand is $0. D) The transactions demand for money is $450, the precautionary demand is $300 and the asset demand is $900.
Entry of new firms will occur in a monopolistic competitive industry until:
a. marginal revenue equals marginal cost. b. economic profit is negative. c. marginal revenue equals zero. d. economic profit equals zero. e. marginal cost equals zero.