If the total costs of producing 1,500 units of output is $15,000 and this output sold to consumers for a total of $16,500, then the firm would earn profits of
A) $31,500.
B) $16,500.
C) $1,500.
D) $15,000.

Question

Quizplus · Accepted Answer

Profits = Total revenue - Total cost
Total revenue = Price per unit x Quantity sold = $16,500
Price per unit = Total revenue / Quantity sold = $16,500 / 1,500 = $11
Total cost = $15,000
Therefore, Profits = $16,500 - $15,000 = $1,500. 
Thus, the correct answer is C.

If the Total Costs of Producing 1,500 Units of Output