Company A manufactures a single automotive component.It had total revenue of $100,000 and an economic profit of $20,000.What is the price of the component it manufactures?
A)($100,000/quantity sold).
B)($100,000/quantity produced).
C)($100,000/quantity sold) − average cost of the product.
D)($100,000/quantity produced) − average cost of the product.

Question

Quizplus · Accepted Answer

The price of the component is determined by dividing the total revenue by the quantity sold, as revenue is calculated by multiplying the price per unit by the number of units sold.

Company a Manufactures a Single Automotive Component