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A firm produces 20 units of output at a market price of #5, a marginal cost of $5, and an average cost of $3. what is the firms economic profit and is the firm maiximizing its economic profit. Is the formula market price-average cost x quantity 20?
Macroeconomics, Economics
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Question: Again, demand is QD = 32 - 1.5P and supply is QS = -20 + 2.5P. Now, however, buyers and sellers have transaction costs of $2 and $3 per unit, respectively. Compare the equilibrium values with those you calculat ...
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