Answer:
economic profits = 0
so correct option is a)zero
Step-by-step explanation:
given data
output = 100 units
total fixed cost = $600
total variable cost = $400
price of product = $10 per unit
firm produces = 100 unit
to find out
firm earn an economic profit of Group
solution
we know here Total revenue is
Total revenue = 10 × 100 =$1000
and Total cost is here
Total cost = $400 + $600
Total cost = $1,000
so economic profits is express as
economic profits = revenue - cost
economic profits = 1000 - 1000
economic profits = 0
so correct option is a)zero