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in a competitive market the price is $8. a typical firm in the market has atc...

in a competitive market the price is $8. a typical firm in the market has atc =$6, AVC=$5, and MC =$8. How much economic profit is the firm earning per unit?

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Answer #1

Economic profit = (p-atc)*q

Since we are caluculating the per unit => q=1

Economic profit = (p -avc)*q => (8-6)*1 => 2.

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