The Campus Crustacean Company receives $2 per box for its crawfish and is selling 1,600 boxes to maximize its profits. What is the profit per box of crawfish at this equilibrium level of output if the average variable cost is $1 per box and total fixed costs are $1,200?
A)$0.25
B)$0.50
C)$1.00
D)$1.25

Question

Quizplus · Accepted Answer

Profit per box = (Price per box - Average variable cost per box) - (Total fixed costs / Number of boxes sold)= ($2 - $1) - ($1,200 / 1,600)= $1 - $0.75= $0.25

The Campus Crustacean Company Receives $2 Per Box for Its