A firm earns a total revenue of $600 from selling its product at a price of $200 per unit.If the per-unit cost of producing the good is $150,the firm sells ________ unit of the good.

Question

Quizplus · Accepted Answer

The profit per unit can be found by subtracting the cost per unit from the selling price per unit:

$200 - $150 = $50

So the profit for selling three units would be:

$50 * 3 = $150

This means that the total cost of producing three units is:

$600 - $150 = $450

Since the cost of producing three units is $450, and the cost per unit is $150, we know that the firm sells:

$450 / $150 = 3 units

A Firm Earns a Total Revenue of $600 from Selling