Question: Consider Figure 23-5, and suppose that the price per unit corresponding to the position of d1 is at $4.50 per unit and that the quantity

Consider Figure 23-5, and suppose that the price per unit corresponding to the position of d1 is at $4.50 per unit and that the quantity at point E1 is exactly 7 units per hour. Calculate total revenues, total costs, and economic profits at point E1, and explain why it is called the short-run break-even point.

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Total revenues equal 450 per unit times 7 units per hour or 3150 per hour ... View full answer

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