Juan's Software Service Company is in a perfectly competitive market. Juan has total fixed cost of $25,000, average variable cost for 1,000 service calls is $45, and marginal revenue is $75. Juan's makes 1,000 service calls a month
What is his economic profit? A) $5,000
B) $25,000
C) $45,000
D) $75,000
E) $50,000
A
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