Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A firm's total revenue is $400, average total cost is $4, and its total variable costs are $240. If it is earning normal profit, what

A firm's total revenue is $400, average total cost is $4, and its total variable costs are $240. If it is earning normal profit, what must its fixed costs be?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

To solve this problem we need to calculate the firms fixed costs given the total revenue average tot... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Power And Plenty Trade, War, And The World Economy In The Second Millennium

Authors: R Findlay, Ronald Findlay

1st Edition

0691143277, 9780691143279

More Books

Students also viewed these Economics questions

Question

What do you like to do in your spare time?

Answered: 1 week ago

Question

Define indirect financial compensation (employee benefits).

Answered: 1 week ago

Question

Describe the selection decision.

Answered: 1 week ago