A firm sells 150 units of output at a price of $8 each. The economic cost of producing the 150 units of output is $1,000 . Calculate the firm's level of economic profit

What will be an ideal response?

To calculate economic profit, we need to subtract total economic cost from total revenue. Total revenue is calculated by multiplying the price of the good by the number of units sold ($8 x 150 = $1,200). To calculate economic profit, we subtract economic cost ($1,000) from total revenue ($1,200) and we get $200.