Mikail's perfectly competitive camera memory card-producing factory is making positive economic profits.If the price of memory cards is $9,Mikail's output is 3,000 cards a month,and his monthly average total cost is $7,what are his monthly profits?

Question

Quizplus · Accepted Answer

Mikail's profit per card is the price minus the average total cost, which is $9 - $7 = $2. Since he sells 3,000 cards a month, his total profit is 3,000 cards * $2/card = $6,000.

Mikail's Perfectly Competitive Camera Memory Card-Producing Factory Is Making Positive