Producer profit-maximizing


The marginal revenue curve of a monopoly crosses its marginal curve at $30 per untit, 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 $48 per unit. What is the producer's profit-maximizing(loss-minimizing) output level? What are the firm's economic profits (or economic losses)?.

Request for Solution File

Ask an Expert for Answer!!
Microeconomics: Producer profit-maximizing
Reference No:- TGS064183

Expected delivery within 24 Hours