If the total costs of producing 1,500 units of output is $12,000 and this output sold to consumers for a total of $15,000, then the firm would earn economic profits of

A) $15,000.
B) $18,000.
C) $3,000.
D) $12,000.
E) $27,000.

Question

Mathew Eveleigh · Accepted Answer

Final Answer : C, Explanation :  Economic profits are calculated by subtracting total costs from total revenue. Here, total revenue is $15,000 (from sales) and total costs are $12,000, so the economic profits are $15,000 - $12,000 = $3,000.

If the total costs of producing 1,500 units of output is $12,000 and this output sold to consumers for a total of $15,000, then the firm would earn economic profits of

A) $15,000.
B) $18,000.
C) $3,000.
D) $12,000.
E) $27,000.

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Learning Objectives

Related questions

If the total costs of producing 1,500 units of output is $12,000 and this output sold to consumers for a total of $15,000, then the firm would earn economic profits ofA) $15,000.B) $18,000.C) $3,000.D) $12,000.E) $27,000.

Definitions

Learning Objectives

Learning Objectives

Related questions

If the total costs of producing 1,500 units of output is $12,000 and this output sold to consumers for a total of $15,000, then the firm would earn economic profits of

A) $15,000.
B) $18,000.
C) $3,000.
D) $12,000.
E) $27,000.