Scenario 9.1: 21st Century Pen, Inc. produces 2,000 pens per day, and hires 20 workers at a cost of $200 per day per worker. The price of each pen is $5 each. 21st Century Pen, Inc. pays a daily rental rate of $60 on its factory and a daily insurance rate of $20. 21st Century Pen, Inc. has a ten year lease on the factory, an insurance contract for a year, and the company has no other expenses.
-Refer to Scenario 9.1.21st Century Pen,Inc.will earn positive economic profit as long as price is

Question

Quizplus · Accepted Answer

Economic profit is positive when the price is greater than the average total cost, which includes all variable and fixed costs.