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cricket20 [7]
3 years ago
11

Quickie Inc., a perfectly competitive firm, currently maximizes profit by producing 400 units of output. If its marginal cost is

equal to $25 and its average total cost is $20, then how much is it earning in economic profit?
Business
1 answer:
jeka943 years ago
8 0

Answer:

economic profit = $2000

Explanation:

given data

currently maximizes profit = 400 units

marginal cost = $25

average total cost = $20

to find out

earning economic profit

solution

first we get here Total revenues that is express as

Total revenues = currently maximizes profit  × marginal cost

Total revenues =  400 ×  $25

Total revenues = $10000

and Total cost will be

Total cost = currently maximizes profit  × average cost

Total cost = 400  ×  $20

Total cost = $8000

so economic profit will be

economic profit = Total revenues - Total cost

economic profit = $10,000 - $8,000

economic profit = $2000

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The future value and present value equations also help in finding the interest rate and the number of years that correspond to p
Vilka [71]

Answer:

4%

Explanation:

Solution:

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Using this formula

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Where,

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Let plug in the formula

Future value = Present Value (1+r)^t

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1+ r = 1.216666666^(1/5)

1+ r = 1.04

r= 1.04-1

r= 0.04*100

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Therefore the implied interest rate the investor will earn on the security will be 4%

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3 years ago
Jake's family business sells and installs tile in bathrooms and kitchens. he is convinced that heater coils under bathroom floor
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