-Refer to the information above to answer this question.What is the firm's total profit if its fixed cost are $180,labour is its only variable costs and it maximizes its profits?
A)$14.
B)$24.
C)$80.
D)$204.
E)Cannot be determined.

Question

-Refer to the information above to answer this question.What is the firm's total profit if its fixed cost are $180,labour is its only variable costs and it maximizes its profits?
A)$14. 
B)$24. 
C)$80. 
D)$204. 
E)Cannot be determined.

Quizplus · Accepted Answer

The firm's total profit is calculated by subtracting total costs (fixed costs + variable costs) from total revenue. If the firm maximizes its profits, it means it has optimized its production to achieve the highest possible profit. Given that the fixed costs are $180 and the correct choice is $24, it implies that the firm's total revenue minus its total costs results in a profit of $24.

-Refer to the Information Above to Answer This Question