alleryStart learning →A firm sells 200 units at Rs 50 each, with average cost of Rs 42 per unit. Its economic profit is:
ARs 1,000
BRs 8,400
CRs 400
DRs 1,600
Answer & Solution
Correct answer: D. Rs 1,600
Economic profit is output times (price minus average cost) = 200 x (50 - 42) = Rs 1,600.
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