Suppose a firm produced 200 units of output but sold only 150 of the units it produced.The average cost of production for each unit of output produced was $80.Each of the 150 units were sold for a price of $50.The total revenue of this firm would be:
A)$12,000
B)$10,000
C)$7,500
D)-$8 500

Question

Quizplus · Accepted Answer

Total cost of producing 200 units = $80 x 200 = $16,000
Total revenue earned from selling 150 units = $50 x 150 = $7,500
Total loss = Total cost - Total revenue = $16,000 - $7,500 = $8,500 (Negative, indicating a loss)
Therefore, the total revenue of the firm is -$8,500. However, since this is not one of the options provided, the best choice is C, which represents the revenue earned from selling the 150 units.

Suppose a Firm Produced 200 Units of Output but Sold