Question

Currently, a monopolist's profit-maximizing output is $200$units per week. It sells its output at a price of $\backslash (60$per unit and collects $\backslash )30$ per unit in revenues from the sale of the last unit produced each week. The firm's total costs each week are $\$9,000$. Given this information, what are the firm's maximized weekly economic profits and its marginal cost?

Short answer

The organizations' quarterly macroeconomic revenues were optimum, and they unit benefit became $530$.

Step-by-step solution

Introduction

A dominance will be when one organization has a dominant position in an industry or sector with both the purpose of banning all those other potential competitors. Monopolies are often discouraged in free-market nations. Because users do have choice, they are considered as lead to market manipulation and declining product.

Given Information

The marginal revenue of the firm from the last unit is $\$30$per unit. Each rate the dealer pays is for each device $\$60$per unit. The business's actual price is a week each$\$9,000$.

Explanation

The average total cost is that the cost of the assembly of the per unit good. The marginal revenue is that the addition in total revenue by selling another unit ofthe nice. The divergence expense is really the rise in the overall pricing significantly with the addition among one fewer piece.
Operating income is often defined as the gap in between company's business revenue and capital costs..
The total economic profit of the firm is calculated below:
$\text{Profit}=\text{Total revenue}-\text{Total cost}$

$=\mathrm{\$}60\times 200-\mathrm{\$}9,000$

$=\mathrm{\$}12,000-\mathrm{\$}9,000$

$=\$3,000$

The total economic profit of the firm is $\$3,000$.

When economic profit and so therefore cost remain equivalent, firm will produce. Therefore, the differential cost of the firm is $530$.