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To calculate the firm's economic profit, we need to determine the total revenue (TR), total cost (TC), and then find the difference between them. Total

To calculate the firm's economic profit, we need to determine the total revenue (TR), total cost (TC), and then find the difference between them.

Total Revenue (TR): Total revenue is calculated as price (P) multiplied by quantity (Q).

=TR=PQ

From the previous answers, we have =70P=70 and =3000Q=3000.

=703000=210,000TR=703000=210,000

Total Cost (TC): Total cost is calculated as average total cost (ATC) multiplied by quantity (Q). Given that ATC is constant at $40:

=TC=ATCQ

=403000=120,000TC=403000=120,000

Economic Profit: Economic profit is the difference between total revenue and total cost.

EconomicProfit=EconomicProfit=TRTC

EconomicProfit=210,000120,000=90,000EconomicProfit=210,000120,000=90,000

Therefore, the firm's economic profit at the current quantity traded is $90,000.

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