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Identify Quick Copy's profit- maximising output. Explain whether this business is making an economic profit or not Will the firm make an economic profit in the long-run? Explain. What will be the long-run price?

Identify Quick Copy's profit- maximising output. Explain whether this business is making an economic profit or not Will the firm make an economic profit in the long-run? Explain. What will be the long-run price?

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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The following figure shows the costs of Quick Copy, one of the copy shops near campus. It operates in a perfectly competitive market. If the market price of copying is 8 cents per page: Cost (cents per page) 10 8 6 MC 60 70 80 MRI MR2 Quantity (pages per hour) a) Identify Quick Copy's profit- maximising output. b) Explain whether this business is making an economic profit or not. c) Will the firm make an economic profit in the long-run? Explain. d) What will be the long-run price?
Transcribed Image Text:The following figure shows the costs of Quick Copy, one of the copy shops near campus. It operates in a perfectly competitive market. If the market price of copying is 8 cents per page: Cost (cents per page) 10 8 6 MC 60 70 80 MRI MR2 Quantity (pages per hour) a) Identify Quick Copy's profit- maximising output. b) Explain whether this business is making an economic profit or not. c) Will the firm make an economic profit in the long-run? Explain. d) What will be the long-run price?
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