Tulip growing is a perfectly competitive industry and all growers have the same costs. The market price of tulips is $18 a bunch and each grower maximizes profit by producing 500 bunches a week. Average total cost of producing tulips is $23 a bunch and average variable cost is $16 a bunch. Minimum average variable cost is $8 a bunch. Calculate each grower's economic profit or loss in the short run. In the short run, each grower is incurring an economic loss of $ 1 a week. >> If the firm incurs an economic loss, select loss in the dropdown window and do not enter a minus sign.

Tulip growing is a perfectly competitive industry and all growers have the same costs. The market price of tulips is $18 a bunch and each grower maximizes profit by producing 500 bunches a week. Average total cost of producing tulips is $23 a bunch and average variable cost is $16 a bunch. Minimum average variable cost is $8 a bunch. Calculate each grower's economic profit or loss in the short run. In the short run, each grower is incurring an economic loss of $ 1 a week. >> If the firm incurs an economic loss, select loss in the dropdown window and do not enter a minus sign.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Please see below. I believe the answer is marginal cost, but I feel like the answer should be marginal revenue. Please help.
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