A firm pays $5,000,000 to purchase a factory which it uses to produce a good. In equilibrium, the firm supplies 100, 000 units of the good at a price of $60 per unit. What is the difference between the firm's producer surplus and profit? Mathematically, Producer Surplus - Firm Profit = ?? (round only your final answer to one decimal place if necessary)

A firm pays $5,000,000 to purchase a factory which it uses to produce a good. In equilibrium, the firm supplies 100, 000 units of the good at a price of $60 per unit. What is the difference between the firm's producer surplus and profit? Mathematically, Producer Surplus - Firm Profit = ?? (round only your final answer to one decimal place if necessary)

Microeconomics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506893

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter9: Price Takers And The Competitive Process

Section: Chapter Questions

Problem 16CQ

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