If the total costs of producing 1,500 units of output is $12,000 and this output sold to consumers for a total of $15,000, then the firm would earn economic profits of
A)$15,000.
B)$18,000.
C)$3,000.
D)$12,000.
E)$27,000.

Question

Quizplus · Accepted Answer

Economic profits are calculated by subtracting total costs from total revenue. Here, total revenue is $15,000 (from sales) and total costs are $12,000, so the economic profits are $15,000 - $12,000 = $3,000.

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