If the price of a firm's product is $10 and the firm faces a constant marginal cost of $4 that is equal to its (constant)average total cost, the profit from selling a unit of the firm's product from its inventory is equal to ________ .

Question

Quizplus · Accepted Answer

The profit from selling a unit of the firm's product from its inventory is equal to the difference between the price and the marginal cost, which is $10 - $4 = $6.

If the Price of a Firm's Product Is $10 and the Firm