Respuesta :
Answer:
What are the firm's economic profits (or losses) if it sells 425 comma 000 copies of the antivirus software program at a $1.00 price per copy?
- economic profit = revenue - total costs = $425,000 - $3,075,000 = ($2,650,000)
What are the maximum economic profits that the firm can earn in the short run?
- maximum economic profit = (225,000 x $40) - $2,875,000 = $6,125,000
What is marginal revenue when the firm maximizes its short-run economic profits?
- $40
Marginal revenue refers to the revenue generated by selling 1 more unit.
In the long run, after entry of competing firms, to the nearest dollar, and including the correct sign, what amount of economic profits will this firm earn?
- $0
On the long run, economic profit will always = 0
Explanation:
price per copy units sold total revenue
$1 425,000 $425,000
$40 225,000 $9,000,000
total cost to produce and sell 425,000 copies = (425,000 x $1) + $2,650,000 = $3,075,000
total cost to produce and sell 275,000 copies = (275,000 x $1) + $2,650,000 = $2,925,000
total cost to produce and sell 225,000 copies = (225,000 x $1) + $2,650,000 = $2,875,000