A custom paper company finds that when the price of paper is $5, its total revenues are $60,000. Its total costs are $70,000, of which $57,000 are variable costs. From this we can infer
A) the firm sells 14,000 units of paper
B) economic profit is $10,000
C) the firm should shut down in the short run
D) total fixed costs are $3,000
E) price is greater than average variable cost

Question

Quizplus · Accepted Answer

The Answer of A custom paper company finds that when the price of paper is $5, its total revenues are $60,000. Its total costs are $70,000, of which $57,000 are variable costs. From this we can infer
A) the firm sells 14,000 units of paper
B) economic profit is $10,000
C) the firm should shut down in the short run
D) total fixed costs are $3,000
E) price is greater than average variable cost

A Custom Paper Company Finds That When the Price of Paper