Yesterday, a perfectly competitive producer of construction bricks manufactured and sold 10,000 bricks per week at a market
- Assuming that this firm has positive fixed costs, did the firm earn economic
profits, economic losses , or zero economic profits yesterday? - To maximize economic profits today, how many bricks should this firm produce today?
Concept Introduction:
Economic profit: The economic profit of a firm is calculated by deducting total revenue from total costs. The total costs consists of both implicit and explicit costs. Explicit cost is the ordinary costs of the firm like rent, employee salaries etc. Implicit cost is also known as imputed cost which describes as the
Want to see the full answer?
Check out a sample textbook solutionChapter 23 Solutions
Economics Today: The Micro View (18th Edition)
- Principles of Economics (12th Edition)EconomicsISBN:9780134078779Author:Karl E. Case, Ray C. Fair, Sharon E. OsterPublisher:PEARSONEngineering Economy (17th Edition)EconomicsISBN:9780134870069Author:William G. Sullivan, Elin M. Wicks, C. Patrick KoellingPublisher:PEARSON
- Principles of Economics (MindTap Course List)EconomicsISBN:9781305585126Author:N. Gregory MankiwPublisher:Cengage LearningManagerial Economics: A Problem Solving ApproachEconomicsISBN:9781337106665Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike ShorPublisher:Cengage LearningManagerial Economics & Business Strategy (Mcgraw-...EconomicsISBN:9781259290619Author:Michael Baye, Jeff PrincePublisher:McGraw-Hill Education