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The Campus Crustacean Company Receives $2 Per Box for Its

Question 75

Multiple Choice

The Campus Crustacean Company receives $2 per box for its crawfish and is selling 1600 boxes to maximize its profits.What is the per-unit profit on a box of crawfish at the profit-maximizing level of output if the variable cost is $1 per box and fixed costs are $1200?


A) $0.25
B) $0.50
C) $1.00
D) $1.25
Total revenue is 1600 * $2 = $3200.Total costs are $1200 + (1600 * $1) = $2800,so profit is $400.Profit per unit is $400/1600 = $0.25.

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