159k views
2 votes
The firm sells its product for P= 5, making 100 units, while its total cost TC= 400. What is

its profit?

User LaPriWa
by
7.5k points

1 Answer

5 votes

Answer:

The profit of the firm is 100 units.

Step-by-step explanation:

To calculate the profit of the firm, you can use the following formula:

Profit = Total Revenue - Total Cost

Total Revenue is calculated as the product of the price (P) and the number of units sold (Q):

Total Revenue = P * Q

In this case, P = 5 and Q = 100, so:

Total Revenue = 5 * 100 = 500

Total Cost (TC) is given as 400.

Now, you can calculate the profit:

Profit = Total Revenue - Total Cost

Profit = 500 - 400

Profit = 100

User Spyter
by
7.4k points