Answer and Explanation:
Given:
Total output = 200 units
Sale price per unit = $70
Total cost = $10,000
Extra revenue from sale = $35
Computation:
1. Weekly economic profit:
Weekly economic profit = Total revenue - Total cost
Weekly economic profit = (200 x $70) - $10,000
Weekly economic profit = $14,000 - $10,000
Weekly economic profit = $4,000
2. Marginal cost:
Firm maximizing its profit, so in this situation
Marginal revenue = Marginal cost
Marginal cost = Marginal revenue = $35
Marginal cost = $35
3. Average total cost:
Average total cost = Total cost / Total output
Average total cost = $10,000 / 200
Average total cost = $50