
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 $8 per unit and the firm produces the profit-maximizing level of output, the firm will earn an economic profit of
A) -$200.
B) zero.
C) $100.
D) $200.
E) $800.
Correct Answer:
Verified
Q58: Figure 5.1 Q59: Accountants refer to zero economic profit as Q60: When a firm makes _ profit, this Q61: A profit-maximizing firm will produce the level
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