Table 13-12
Bill's Birdhouses

-Refer to Table 13-12.What is Bill's economic profit at the profit-maximizing output level?

Question

Table 13-12
Bill's Birdhouses
 
-Refer to Table 13-12.What is Bill's economic profit at the profit-maximizing output level?

Quizplus · Accepted Answer

To find economic profit, we need to subtract total economic costs from total revenue.

At the profit-maximizing output level of 8 units, total revenue is:

8 x $15 = $120

Total economic costs are:

(8 x $10) + $25 = $105

So, economic profit is:

$120 - $105 = $15

Therefore, Bill's economic profit at the profit-maximizing output level is $15, which corresponds to option C.

Table 13-12 Bill's Birdhouses