Final answer:
The profit for producing and selling laser printers is determined by subtracting total costs from total revenue. In the given example, selling 40 laser printers at $16 each with an average cost of $14.50 per unit results in a profit of $60.
Step-by-step explanation:
The Profit of Production and Sales of Laser Printers The production and sales of x laser printers can be analyzed in terms of profit using economic principles. Profit is calculated by subtracting total costs from total revenue. To elaborate, if a firm sells 40 laser printers at a price of $16 each while the average cost is $14.50 per unit, the firm's total revenue would be the product of the quantity sold and the price, which is 40 units times $16, resulting in $640. The total cost would be the quantity times the average cost, so 40 units times $14.50, which equals $580. Subtracting the total cost from total revenue ($640 - $580) yields a profit of $60. This process is essential for determining the optimal output that maximizes profits, like when output quantity 5 generated a profit of $40. Laser printers employ the xerographic process with a laser that creates high precision images on a photoconducting drum. These printers have the capability to perform significant information processing, often housing computers more powerful than those supplying the raw data, which enables them to produce intricate designs and fonts.