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Given the $75 product price, at its optimal output the firm will

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Total Total
Total fixed variable Total
product cost cost cost
0 $50 $ 0 $ 50
1 50 70 120
2 50 120 170
3 50 150 200
4 50 220 270
5 50 300 350
6 50 390 440

1. Refer to the above data. Given the $75 product price, at its optimal output the firm will:
A. realize a $25 economic profit.
B. realize a $30 economic profit.
C. incur a $25 loss.
D. realize a $30 loss.

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Solution Summary

The solution determines optimal output and economic profit.

Solution provided by:
Gaurav Agarwal, MS
Education
  • BE, Bangalore University, India
  • MS, University of Wisconsin-Madison
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