MC ATC 12 10 ... 4 2 20 40 60 80 100 Quantity (pages per hour) Suppose the price of a copy is 10 cents per page. The profit maximizing output is pages per hour. At this level of output, the firm's average total cost is cents per page. The firm's economic profit is As you are computing the economic profit, note that the units on price are in cents. Twenty cents in decimal form is 0.20 for example. In the long run, the price of a copy is cents per page and the firm produces pages per hour. T economic profit in the long run is zero. Cost (cents per page)

MC ATC 12 10 ... 4 2 20 40 60 80 100 Quantity (pages per hour) Suppose the price of a copy is 10 cents per page. The profit maximizing output is pages per hour. At this level of output, the firm's average total cost is cents per page. The firm's economic profit is As you are computing the economic profit, note that the units on price are in cents. Twenty cents in decimal form is 0.20 for example. In the long run, the price of a copy is cents per page and the firm produces pages per hour. T economic profit in the long run is zero. Cost (cents per page)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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