Adam's surfboard factory is making positive economic profits. If the price of a surfboard is $900, Adam's output is 300 surfboards per month, and his monthly average cost is $700, what is his monthly profit?
A)$60,000
B)$270,000
C)$210,000
D)$200

Question

Quizplus · Accepted Answer

Adam's monthly profit is calculated by subtracting his total costs from his total revenue. His total revenue is $900 * 300 = $270,000. His total costs are $700 * 300 = $210,000. Therefore, his monthly profit is $270,000 - $210,000 = $60,000.

Adam's Surfboard Factory Is Making Positive Economic Profits