The first table shows cost data for a single firm. Now suppose that there are 600 identical firms in this industry, each with the same cost data. Suppose, too, that the demand curve for this industry is as shown in the second table. At equilibrium, each firm will realize
A)an economic profit of $155.
B)an economic profit of $35.
C)a loss of $45.
D)a loss of $135.

Question

The first table shows cost data for a single firm. Now suppose that there are 600 identical firms in this industry, each with the same cost data. Suppose, too, that the demand curve for this industry is as shown in the second table.  At equilibrium, each firm will realize
A)an economic profit of $155. 
B)an economic profit of $35. 
C)a loss of $45. 
D)a loss of $135.

Quizplus · Accepted Answer

The Answer of  The first table shows cost data for a single firm. Now suppose that there are 600 identical firms in this industry, each with the same cost data. Suppose, too, that the demand curve for this industry is as shown in the second table.  At equilibrium, each firm will realize
A)an economic profit of $155. 
B)an economic profit of $35. 
C)a loss of $45. 
D)a loss of $135.

The First Table Shows Cost Data for a Single Firm