Question

3. Working with Numbers and Graphs Q3 Suppose that a small business sells 975 units of goods per month at $30 per unit. The unit cost of producing 975 units of goods is $15. The business has implicit costs of $3,400. The economic profit of this business equals $_________.

Answer 1

economic profit = $11225

Step-by-step explanation:

given data

sells = 975 units

cost = $30 per unit

cost of producing goods = $15

implicit costs = $3,400

solution

total revenue = 975 × 30 = $29250

and total cost = 975 × 15 = $14625

so here Total profit will be as

Total profit = $29250 - $14625 = $14625

so here economic profit will be

economic profit = Total profit - implicit costs

economic profit = $14625 - $3,400

economic profit = $11225