The marginal revenue curve of a
Concept introduction:
Economic profit
Economic profit is the difference between the total revenue earned by selling the product and the
Profit maximizing (Loss minimizing) output
As, average cost of production is more than the average revenue earned, there will be a loss.
Profit maximizing (Loss minimizing) output will be 2 million units.
Firm’s economic loss will be $6 million dollars.
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Economics Today: The Micro View (19th Edition) (Pearson Series in Economics)
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