The Wax Works sells 500 candles at a price of $5 per candle. The Wax Worksʹ total economic costs for producing 500 candles are $3,000. The Wax Worksʹ economic profit is

Question

Quizplus · Accepted Answer

Economic profit is calculated as total revenue minus total economic costs. Total revenue is 500 candles * $5 = $2,500. Economic costs are $3,000. Thus, economic profit is $2,500 - $3,000 = -$500.

The Wax Works Sells 500 Candles at a Price of $5