of 2 million units. The price that consumers are willing to pay for this output is $50 per unit. If it produces this output, the firm's average total cost is $43 per unit. d. How much is total cost? e. What are the firm's economic profits (or economic lasses)?

of 2 million units. The price that consumers are willing to pay for this output is $50 per unit. If it produces this output, the firm's average total cost is $43 per unit. d. How much is total cost? e. What are the firm's economic profits (or economic lasses)?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

The marginal revenue curve of a monopoly crosses its marginal cost curve at $30 per unit and an output
of 2 million units. The price that consumers are willing to pay for this output is $50 per unit. If it
produces this output, the firm's average total cost is $43 per unit.
d. How much is total cost?
e. What are the firm's economic profits for economic losses)?

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