Final answer:
The profit for the standard and sustainable deluxe boxes is calculated by subtracting total costs from total revenues, resulting in a profit of $60. The profit percentage is found by dividing the profit by total costs and multiplying by 100, yielding approximately 10.34%.
Step-by-step explanation:
To determine the profit for the standard and sustainable deluxe boxes, we analyze the firm's chosen quantity and price and subtract total costs from total revenues. In the provided example, a firm with an output quantity of 40 units at a price of $16 per unit displays economic profits since the price exceeds the average costs. Specifically:
- Total Revenue (TR) = Quantity × Price = 40 × $16 = $640
- Total Cost (TC) = $580
- Profit = TR - TC = $640 - $580 = $60
The profit percentage is calculated by dividing profits by total costs and multiplying by 100:
Profit Percentage = (Profit / Total Cost) × 100 = ($60 / $580) × 100 ≈ 10.34%
The practical example given indicates that the standard and sustainable deluxe boxes generate a profit of $60 and a profit percentage of approximately 10.34% at the given output levels and costs.