Currently, a monopolist’s profit maximizing output is 200 units per week. It sells its output at a price of $60 per unit and collects $30 per unit in revenue from the sale of the last unit produced each week. The firm’s total costs each week are $9,000. Given this information, what are the firm’s maximized weekly economic profits and its marginal cost?
Concept introduction:
Economic profit
Economic profit is the difference between the total revenue earned by selling the product and the
The objective of a firm is to maximize the profit or to minimize the loss.
Economic profit is $ 3,000
Marginal cost is $30
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