Wenqin is a farmer,and in the short run,she produces 100 kilograms of wheat.Her average total cost per kilogram is $1.75,total revenue is $450,and total fixed cost is $100.Wenqin's:

Question

Quizplus · Accepted Answer

To determine the economic profit per kilogram, we need to calculate Wenqin's total variable cost per kilogram, which is equal to the average total cost per kilogram minus the average fixed cost per kilogram.

Average variable cost per kilogram = Average total cost per kilogram - Average fixed cost per kilogram 
Average variable cost per kilogram = $1.75 - ($100/100) 
Average variable cost per kilogram = $1.75 - $1 
Average variable cost per kilogram = $0.75

Now we can calculate the economic profit per kilogram:

Economic profit per kilogram = Total revenue per kilogram - Total variable cost per kilogram 
Economic profit per kilogram = ($450/100) - $0.75 
Economic profit per kilogram = $4.50 - $0.75 
Economic profit per kilogram = $3.75

Therefore, Wenqin's economic profit per kilogram is $2.75 ($3.75 - $1, which is the price per kilogram). Option B is the correct choice.

Wenqin Is a Farmer,and in the Short Run,she Produces 100