Consider the price and quantity data below for a perfectly competitive firm producing mousetraps.
TABLE 9-1
-Refer to Table 9-1.Suppose this firm is producing 2000 mousetraps and average variable cost is $5.50.What level of economic profit is this firm earning?

Question

Consider the price and quantity data below for a perfectly competitive firm producing mousetraps.
  TABLE 9-1
-Refer to Table 9-1.Suppose this firm is producing 2000 mousetraps and average variable cost is $5.50.What level of economic profit is this firm earning?

Quizplus · Accepted Answer

There is insufficient information provided to determine the firm's total revenue, total cost, or fixed costs, which are necessary to calculate economic profit.

Consider the Price and Quantity Data Below for a Perfectly