Reference no: EM132408651

The market research firm you hired provides you with the market demand for a hydro-engine. They've tried to keep things as simple as possible for you and created a linear demand equation, where Qd is the number of motorcycles demanded per year: Qd = 10,000 - 0.5P Due to the mechanization of your production process, your marginal cost per engine is a constant $2,000 per engine. You've spent millions creating a state-of-the-art production line that helps keep your labor costs down. The annual fixed costs of your operation are $4,000,000. The marginal cost of producing every engine is $2,000 per engine with your current production line. Determine how much economic profit you will make this year at your current quantity and price. Calculate total revenues, total costs, and the amount of annual profit.