Assume that marginal revenue equals rising marginal cost at 100 units of output. At this output level, a profit-maximizing firm's total fixed cost is $600 and its total variable cost is $400. If the price of the product is $15 per unit and the firm produces at the profit-maximizing level, the firm will earn an economic profit equal to   a. zero.   b. its normal profit.   c. more than zero but less than $500.   d. $500.   e. more than $500.

ENGR.ECONOMIC ANALYSIS
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Assume that marginal revenue equals rising marginal cost at 100 units of output. At this output level, a profit-maximizing firm's total fixed cost is $600 and its total variable cost is $400. If the price of the product is $15 per unit and the firm produces at the profit-maximizing level, the firm will earn an economic profit equal to

  a.

zero.

  b.

its normal profit.

  c.

more than zero but less than $500.

  d.

$500.

  e.

more than $500.

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