What are the firm economic profits

Reference no: EM1370612

The marginal revenue curve of a monopoly crosses its marginal cost curve at $30 per unit, and an output of 2 million units. The price that consumers are willing and able to pay for this output is $40 per unit. If it produces this output, the firm's average total cost is $43 per unit, and its average fixed cost is $8 per unit.

a) What is this producer's profit-maximizing (loss-minimizing) output level?

b) What are the firm's economic profits (or economic losses)?

Reference no: EM1370612

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