If a fishing boat owner brings 10,000 fish to market and the market price is $7 per fish, she will have $70,000 in total revenue. If the average variable cost of 10,000 fish is $4 and the fixed cost of the boat is $20,000, what is her profit?

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Quizplus · Accepted Answer

The total revenue is $70,000. The total variable cost is 10,000 fish * $4 = $40,000. The total cost is the sum of variable costs and fixed costs: $40,000 + $20,000 = $60,000. Profit is total revenue minus total cost: $70,000 - $60,000 = $10,000.

If a Fishing Boat Owner Brings 10,000 Fish to Market