Question

Kalteen sells 250 units for $12 each and the firm faces an average total cost of $4, what is Kalteen's profit?

A. $0
B. $1000
C. $3000
D. $8
E. $2000

Answer 1

Answer: E. $2000

Explanation: Total revenue is calculated by multiplying the number of units sold by the price per unit:

Total revenue = 250 units * $12/unit = $3000

Total cost is given as the average total cost multiplied by the number of units sold:

Total cost = $4/unit * 250 units = $1000

Profit is then calculated by subtracting the total cost from the total revenue:

Profit = Total revenue - Total cost = $3000 - $1000 = $2000

Answer 2

Kalteen's profit is calculated by subtracting the total cost from the total revenue. The total cost is $1000, and the total revenue is $3000, so the profit is $2000.

Step-by-step explanation:

The student has inquired about the profit for a firm named Kalteen that has sold 250 units at $12 each. To calculate profit, we need to subtract the total cost from total revenue. With an average total cost of $4 per unit, the total cost for 250 units would be $4 multiplied by 250, which is $1000. The total revenue from selling 250 units at $12 each is $12 multiplied by 250, resulting in $3000. Thus, the firm's profit is total revenue ($3000) minus total cost ($1000), which equals $2000.