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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.

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    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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