Computing economic profit or loss

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Reference no: EM1370014

Suppose a perfectly competitive firm is producing 300 units of output, P = $10, ATC of 300th unit is $8, marginal cost of 300th unit = $10, and AVC of the 300th unit = $6. Based upon this information, the firm is:

A) earning an economic profit of $600.

B) earning an economic profit of $1,200.

C) incurring a loss of $600.

D) incurring a loss of $1,200.

Reference no: EM1370014

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