Table 14-4
The following table presents cost and revenue information for John's Vineyard.

-Refer to Table 14-4.What is John's Vineyard's economic profit at its profit-maximizing output level?

Question

Table 14-4
The following table presents cost and revenue information for John's Vineyard.
 
-Refer to Table 14-4.What is John's Vineyard's economic profit at its profit-maximizing output level?

Quizplus · Accepted Answer

John's Vineyard's economic profit is the difference between its total revenue and its total cost. At its profit-maximizing output level, John's Vineyard's total revenue is $200 and its total cost is $85. Therefore, John's Vineyard's economic profit is $200 - $85 = $115.

Table 14-4 The Following Table Presents Cost and Revenue Information for John's