Refer to the accompanying graph. If this firm is a price taker, then when the price of each unit of output is $30, how much profit does this firm earn at its profit-maximizing level of output?
A)$500
B)$800
C)$1,200
D)$1,600

Question

Refer to the accompanying graph. If this firm is a price taker, then when the price of each unit of output is $30, how much profit does this firm earn at its profit-maximizing level of output? 
A)$500 
B)$800 
C)$1,200 
D)$1,600

Quizplus · Accepted Answer

Profit = total revenue − total cost ($800 = $2,400 − $1,600).

Refer to the Accompanying Graph