Scenario 14-1
Assume a certain firm is producing 1000 units of output (so Q = 1000).At Q = 1000, the firm's marginal cost equals $15 and its average total cost equals $11.The firm sells its output for $12 per unit.
-Refer to Scenario 14-1.At Q = 999,what is the firm's profit

Question

Quizplus · Accepted Answer

At Q = 999, the firm's profit is equal to its total revenue minus its total cost. Total revenue is equal to the price per unit multiplied by the number of units sold, which is $12 * 999 = $11,988. Total cost is equal to the average total cost per unit multiplied by the number of units produced, which is $11 * 999 = $10,989. Therefore, the firm's profit is $11,988 - $10,989 = $999.

Scenario 14-1 Assume a Certain Firm Is Producing 1000 Units of Output