Economic profit-break even-incur an economic loss


Answer the question below on the basis of the following cost data for a purely competitive seller:

Total Product TFC TVC
0 $150 $0
1 150 70
2 150 120
3 150 150
4 150 220
5 150 300
6 150 390

If the product price is $95, at its optimal output will the firm realize an economic profit, break even, or incur an economic loss? How much will the profit or loss be? Show all calculations.

Solution Preview :

Prepared by a verified Expert
Microeconomics: Economic profit-break even-incur an economic loss
Reference No:- TGS01785367

Now Priced at $20 (50% Discount)

Recommended (95%)

Rated (4.7/5)