
Assume that marginal revenue equals rising marginal cost at 100 units of output. At this output level, a profit-maximizing firm's total fixed cost is $600 and its total variable cost is $400. If the price of the product is $10 per unit and the firm produces 100 units, the firm will earn an economic profit of
A) zero.
B) $400.
C) more than zero but less than $100.
D) $100.
E) more than $100.
Correct Answer:
Verified
Q62: Figure 5.2 Q63: Assume that marginal revenue equals rising marginal Q64: A firm wishing to maximize profits will Q65: Assume that a firm is producing an Q66: Assume that marginal revenue equals rising marginal Q68: When marginal cost is rising and exceeds Unlock this Answer For Free Now! View this answer and more for free by performing one of the following actions Scan the QR code to install the App and get 2 free unlocks Unlock quizzes for free by uploading documents
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