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# difference between Economic and Normal profits

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Question 5B is complete once you find the output for the firm, that answer will help you find out if the firm is making a profit.

5. Market price is \$50. The firm's marginal cost curve is given by
MC = 10 + 2Q
a. Find the profit-maximizing output for the firm.
b. At this output, is the firm making a profit? Explain your answer.

6. A perfectly competitive firm has the cost function TC=1000+2Q+0.1 Q2
a. What is the lowest price at which this firm can break even?

7. Explain the difference between Economic and Normal profits.

https://brainmass.com/economics/break-even-analysis/difference-between-economic-normal-profits-83046

#### Solution Preview

Question 5B is complete once you find the output for the firm, that answer will help you find out if the firm is making a profit.

5. Market price is \$50. The firm's marginal cost curve is given by MC = 10 + 2Q
a. Find the profit-maximizing output for the firm.
The profit is maximized where P = MC
i.e., 10 + ...

#### Solution Summary

This job cites the difference between Economic and Normal profits.

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