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?
