Billy’s Bean Bag Emporium produced 300 bean bag chairs but sold only 275 of the units it produced. The average cost of production for each unit of output produced was $100. The price for each of the 275 units sold was $95. Total profit for Billy’s Bean Bag Emporium would be

a. -$3,875.
b. $30,000.
c. $28,500.
d. $26,125.


Answer: a. -$3,875.

Economics

You might also like to view...

Use the following graph for a competitive market to answer the question below.Assume the government imposes a $3 tax on buyers, which results in a shift of the demand curve from D1 to D2. The government's tax revenue is

A. $900. B. $2,100. C. $2,400. D. $600.

Economics

Payments by a corporation to its shareholders are known as

A) dividends. B) coupons. C) stocks. D) bonds.

Economics

In monopolistically competitive markets, economic profits ____, and ____ shifts the demand curve of the remaining firms to the ____

a. signal some remaining firms to exit; exit; right b. signal some remaining firms to exit; exit; left c. signal new firms to enter; entry; left d. signal new firms to enter; entry; right

Economics

Opportunity cost is the highest possible price you can receive when you sell an object

a. True b. False Indicate whether the statement is true or false

Economics