Answer
Economic profit =total revenue -total cost
total revenue =P*Q=10*96=960
total cost =200
Economic profit =960-200
=$760
the profit is $760
Option 1
A firm operates in a competitive market, selling good Q. His total cost is simply $200....
A firm operates in a competitive market, selling good Q. His total cost is simply $200. The market price of Q is $10 a unit. If the firm is selling 96 units of Q, then what is firm’s profit? A. $760 B. $960 C. $450 D. $120
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