The producer of a downloadable antivirus software program spends exactly $2,650,000 producing the first copy and incurring various costs required to make the software "user-friendly." The firm can produce and distribute additional copies at a per-unit cost of $1.00. If the company sold as many copies as consumers wished to purchase at a price of $1.00 per copy, it would sell 450,000 copies. If the company maximizes its economic profits in the short-run, it sells 250,000 copies at a price of $50. Finally, the company earns zero economic profits when it sells 300,000 copies.
a. What are the maximum economic profits that the firm can earn in the short run?
b. What is marginal revenue when the firm maximizes its short-run economic profits?
c. In the long run, after entry of competing firms, to the nearest dollar, and including the correct sign, what amount of economic profits will this firm earn?
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “The producer of a downloadable antivirus software program spends exactly $2,650,000 producing the first copy and incurring various costs ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
For a survey, a company decided to call 7 out of every 5000 people. how many people should be called in a town of 78000 people?
Answers (1)
The balance of the Allowance for Doubtful Accounts account at January1 of the current year was $6,800. During the year, accounts receivable in the amount of $9,000 were written off.
Answers (1)
This is an exit strategy when an entrepreneur sells his or her company to its managers
Answers (1)
Apple Valley Corporation uses a job cost system and has two production departments, A and B. Budgeted manufacturing costs for the year are: Department A Department B Direct materials $700,000 $100,000 Direct manufacturing labor $200,000 $800,000
Answers (1)
The chart shows the pricing history for two items. Which person saved the most money by buying a product at the right time?
Answers (1)
New Questions in Business
Marquese is making 10 pounds of trail mix from raisins and nuts. Raisins cost $3.45 per pound, and nuts cost $7.95 per pound. How many pounds of raisins and how many pounds of nuts should marquese use for the trail mix to cost him $6.96 per pound?
Answers (2)
Ten Pins Manufacturing has 9 million shares of common stock outstanding. The current share price is $81, and the book value per share is $8. The company also has two bond issues outstanding.
Answers (1)
The higher the price of an antique, the greater people's expectation that the object is rare. That, in turn, makes the antique appear more valuable. If the statements above are correct, then offering an antique for sale at a bargain price:
Answers (1)
Elmer received the following distributions from Virginiana Mutual Fund for the calendar year 2019: Ordinary dividends $250 Capital gain distributions $170 Nontaxable distributions $80 Elsie, Elmer's wife, did not own any of the Virginiana Mutual
Answers (1)
Ocean Vessels, Inc., and Pacific Harbor Company enter into a contract for a sale of a boat. Ocean is a merchant who deals in goods of the kind sold. The goods are defective. Under the UCC, the implied warranty of merchantability is breached a.
Answers (1)