Heath's company currently produces 30 units of output. The price of the good is $8 per unit, while total fixed cost is $50 and average variable cost is $5 per unit. Heath's profit-maximizing company

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Heath's company's total revenue is 30 units * $8/unit = $240. Total variable cost is 30 units * $5/unit = $150. Total cost is total fixed cost ($50) + total variable cost ($150) = $200. Profit is total revenue ($240) - total cost ($200) = $40. Therefore, the company is experiencing a profit of $40.

Heath's Company Currently Produces 30 Units of Output