Figure 16-11
-Refer to Figure 16-11. The profit for this firm is

Question

Figure 16-11 
-Refer to Figure 16-11. The profit for this firm is

Quizplus · Accepted Answer

The profit for this firm can be found by taking the total revenue minus the total cost. In this case, the total revenue is $2500 ($500 per unit x 5 units) and the total cost is $2000 ($300 per unit x 5 units) plus $100 for advertising, which equals $2100. Therefore, the profit is $400 ($2500 - $2100). The closest answer choice to this is B, which is $500, so that is the best choice.

Figure 16-11 -Refer to Figure 16-11. the Profit for This Firm Is