Currently, a monopolist's profit-maximizing output is 400 units per week and it sells its output at a price o S60 per unit. The firm's total costs are $10,000 per week. The firm is maximizing its profit, and it earns $40 in extra revenue from the sale of the last unit produced each week. a. What are the firm's weekly economic profits? b. What is the firm's marginal cost? c What is the firm's average total cost?
Currently, a monopolist's profit-maximizing output is 400 units per week and it sells its output at a price o S60 per unit. The firm's total costs are $10,000 per week. The firm is maximizing its profit, and it earns $40 in extra revenue from the sale of the last unit produced each week. a. What are the firm's weekly economic profits? b. What is the firm's marginal cost? c What is the firm's average total cost?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![Currently, a monopolist's profit-maximizing output is 400 units per week and it sells its output at a price of
S60 per unit. The firm's total costs are $10,000 per week. The firm is maximizing its profit, and it earns $40
in extra revenue from the sale of the last unit produced each week.
a. What are the firm's weekly economic profits?
b. What is the firm's marginal cost?
c. What is the firm's average total cost?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F110e73e1-335d-4d49-9655-8f487c26823b%2F64f46646-d4e8-4341-92a9-13de818e4667%2Fmhutrk_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Currently, a monopolist's profit-maximizing output is 400 units per week and it sells its output at a price of
S60 per unit. The firm's total costs are $10,000 per week. The firm is maximizing its profit, and it earns $40
in extra revenue from the sale of the last unit produced each week.
a. What are the firm's weekly economic profits?
b. What is the firm's marginal cost?
c. What is the firm's average total cost?
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