Scenario 13-5
A stationery firm produces and sells staplers.Last year, it produced 5000 staplers and sold each stapler for $10.In producing the 5000 staplers, it incurred variable costs of $25,000 and a total cost of $45,000.
-Refer to Scenario 13-5.What was the firm's economic profit for the year

Question

Quizplus · Accepted Answer

Economic profit = Total revenue - Total cost = (Price per stapler * Number of staplers sold) - Total cost = ($10 * 5000) - $45,000 = $50,000 - $45,000 = $5,000

Scenario 13-5 A Stationery Firm Produces and Sells Staplers.Last Year, It Produced