If the total costs of producing 1,500 units of output is $15,000 and this output sold to consumers for a total of $16,500, then the ﬁrm would earn economic proﬁts of
A) $31,500.
B) $16,500.
C) $1,500.
D) $15,000.

Question

Quizplus · Accepted Answer

Economic profits are calculated by subtracting total costs from total revenue. In this case, total revenue is $16,500 and total costs are $15,000, so economic profits would be $1,500. Therefore, the correct answer is C.

If the Total Costs of Producing 1,500 Units of Output