Homework Answers
The correct option is D) Any level of output between 100 and 440 unit will yield an economic profit.
Economic Profit= Total Revenue - Total Cost
Between 100 and 440 units of output, Total Revenue is greater than total cost. Thus, any level between 100 and 440 units will give an economic profit.
Option A cannot be true because here the economic profits are not maximized. Rather, economic profit is zero at this level as Total Revenue is equal to Total costs.
Option B cannot be true as marginal revenue is constant here it doesnot rises with output level.
Option C cannot be true because at any level less than 100 units and greater than 440 units, total cost is greater than total revenue. As a result firms make economic loss.
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Help with #3-5 please!
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Show work pretty please.
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#1
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