A fishing boat owner brings 50,000 fish to market and the market price is $4 per fish. Her average variable cost of 50,000 fish is $1 and the fixed cost of the boat is $100,000, what is her profit per fish?

Question

Quizplus · Accepted Answer

The profit per fish is calculated by subtracting the average variable cost from the market price, which is $4 - $1 = $3. However, the question asks for profit per fish, not total profit. The fixed cost does not affect the profit per fish calculation.

A Fishing Boat Owner Brings 50,000 Fish to Market and the Market