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Halibut Incorporated (Inc.) sells halibut in a perfectly competitive market. Halibut Inc. is able to sell halibut for $400$400 per unit. In this market, there are 2000 firms2000 firms competing with one another. Last year, Halibut Inc. was able to earn an economic profit of $1,000,000$1,000,000 . The firm has purchased a permit to fish this season, insurance in case one of their workers gets hurt on the job, and a boat. Together, these items represent all of the firm's fixed costs and sum to $100,000$100,000 . Last year, Halibut Inc.'s total revenue was $1,300,000$1,300,000 . What is the marginal revenue per unit for this firm?

Halibut Incorporated (Inc.) sells halibut in a perfectly competitive market. Halibut Inc. is able to sell halibut for $400$400 per unit. In this market, there are 2000 firms2000 firms competing with one another. Last year, Halibut Inc. was able to earn an economic profit of $1,000,000$1,000,000 . The firm has purchased a permit to fish this season, insurance in case one of their workers gets hurt on the job, and a boat. Together, these items represent all of the firm's fixed costs and sum to $100,000$100,000 . Last year, Halibut Inc.'s total revenue was $1,300,000$1,300,000 . What is the marginal revenue per unit for this firm?

Economics: Private and Public Choice (MindTap Course List)
Economics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506725
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
Chapter24: Price-searcher Markets With High Entry Barriers
Section: Chapter Questions
Problem 7CQ
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Halibut Incorporated (Inc.) sells halibut in a perfectly competitive market. Halibut Inc. is able to sell halibut for $400$400 per unit. In this market, there are 2000 firms2000 firms competing with one another. Last year, Halibut Inc. was able to earn an economic profit of $1,000,000$1,000,000 .

The firm has purchased a permit to fish this season, insurance in case one of their workers gets hurt on the job, and a boat. Together, these items represent all of the firm's fixed costs and sum to $100,000$100,000 . Last year, Halibut Inc.'s total revenue was $1,300,000$1,300,000 .

What is the marginal revenue per unit for this firm?

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