Sterling runs a donut shop which which is being operated in a perfectly competitive market where they earn positive economic profits. If the price of a donut is $3, Sterling makes 800 donuts a month, and their monthly average total cost is $2. What are Sterling's profits each month?
Sterling runs a donut shop which which is being operated in a perfectly competitive market where they earn positive economic profits. If the price of a donut is $3, Sterling makes 800 donuts a month, and their monthly average total cost is $2. What are Sterling's profits each month?
Chapter11: The Firm: Production And Costs
Section: Chapter Questions
Problem 2P
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![Sterling runs a donut shop which which is being operated in a perfectly competitive market where they earn positive economic
profits. If the price of a donut is $3, Sterling makes 800 donuts a month, and their monthly average total cost is $2. What are
Sterling's profits each month?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F63b9f5bc-73bc-4e93-8dcc-e84c51943272%2F7b9fde73-f58e-4c8c-81a2-e61903c0fed0%2Fegmk3cn_processed.png&w=3840&q=75)
Transcribed Image Text:Sterling runs a donut shop which which is being operated in a perfectly competitive market where they earn positive economic
profits. If the price of a donut is $3, Sterling makes 800 donuts a month, and their monthly average total cost is $2. What are
Sterling's profits each month?
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