Assume a firm is producing 500 units of output and that it sells each unit for $6.Its average total cost is $4.What is its profit

Name: Assume a firm is producing 500 units of output and that it sells each unit for $6.Its average total cost is $4.What is its profit
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Question

Quizplus · Accepted Answer

Total revenue = Price x Quantity = 6 x 500 = $3000
Total cost = Average total cost x Quantity = 4 x 500 = $2000
Profit = Total revenue - Total cost = $3000 - $2000 = $1000

Assume a Firm Is Producing 500 Units of Output and That