Exhibit 7-2 Total revenue and total cost graph

-In Exhibit 7-2,if output is 200 units per week,economic profit for the firm is:

Question

Exhibit 7-2 Total revenue and total cost graph
 
-In Exhibit 7-2,if output is 200 units per week,economic profit for the firm is:

Quizplus · Accepted Answer

At an output of 200 units per week, the total revenue and total cost curves intersect, indicating that the firm is earning only normal profit, i.e., just enough to cover its opportunity costs. Economic profit would be zero at this level of output. Thus, option A is the correct choice.

Exhibit 7-2 Total Revenue and Total Cost Graph