If the price is $5.00 and Average Total Costs are $10.00 when the firm sells 100...

If the price is $5.00 and Average Total Costs are $10.00 when the firm sells 100 pizzas, find the total profits.

(if you need a negative sign, it MUST be included. Type in $ format, like -$200.00)

Solutions

Expert Solution

Answer -

Total revenue = 5*100

= $ 500

Total cost = 100*10

= $ 1000

Profit / Loss = TR - TC

= 500-1000

= $ (-500.00)

Rahul Sunny answered 2 years ago

Next > < Previous

Related Solutions

when a firm faces a market price that is between the minimums of average total cost...

when a firm faces a market price that is between the minimums of average total cost and average variable cost, which of the strategies should it choose? a. continue to produce and sell output because it will maximize its economic profit b. produce nothing and shut down the business c. produce nothing and keep the business d. continue to produce and sell output because it will minimize its economic loss

When a firm is a price-taking firm, the price of the product it sells is determined...

When a firm is a price-taking firm, the price of the product it sells is determined by the intersection of the market demand and supply curves for the product. raising the price of the product above the market-determined price will cause sales to fall nearly to zero. many other firms produce a product that is identical to the output produced by the rest of the firms in the industry. all of the above

No. of Products Total Variable Costs, $ Total Costs $ Average Fixed Cost $ Average Variable...

No. of Products Total Variable Costs, $ Total Costs $ Average Fixed Cost $ Average Variable Cost $ Average Total Cost $ Marginal Cost$ 0 0 1 12 2 20 3 24 4 27 5 40 6 65 7 98 Assume that the fixed cost is $80, calculate the above costs in the table and explain the difference between average total costs and marginal costs. In a graph illustrate the Average Total Cost and Marginal Cost Curves, explain their relationship....

A firm sells Gizmos to consumers at a price of $87 per unit. The costs to...

A firm sells Gizmos to consumers at a price of $87 per unit. The costs to produce Gizmos is $30 per unit. The company will sell 14,000 Gizmos to consumers each year. The fixed costs incurred each year will be $140,000. There is an initial investment to produce the goods of $2,400,000 which will be depreciated straight line over 5 year life of the investment to a salvage value of $0. The opportunity cost of capital is 9% and the...

a) Find ABC’s average fixed costs, average variable costs, average total costs and marginal costs.

Quantity Total Fixed Cost Total Variable Cost 0 100 0 1 100 50 2 100 70 3 100 90 4 100 140 5 100 200 6 100 360 a) Find ABC’s average fixed costs, average variable costs, average total costs and marginal costs. b) Since ABC is charging the customers at the price of $50, it seems that the company cannot make a profit. The owner decides to shut down operations. What are ABC’s profits/losses? Should the owner shut down...

Wives' Count of Appraisal Survey Column Labels Row Labels N Y Grand Total High 5.00% 10.00%...

Wives' Count of Appraisal Survey Column Labels Row Labels N Y Grand Total High 5.00% 10.00% 15.00% Low 25.00% 0.00% 25.00% Mid 5.00% 55.00% 60.00% Grand Total 35.00% 65.00% 100.00% Husbands' Count of Appraisal Survey Column Labels Row Labels N Y Grand Total High 10.00% 25.00% 35.00% Low 0.00% 10.00% 10.00% Mid 25.00% 30.00% 55.00% Grand Total 35.00% 65.00% 100.00% What is the chance that a wife surveyed on the same day as her busband will give a mid-range score?...

Main Company sells 100 televisions on January 1, 2017, at a total price of €40,000 with...

Main Company sells 100 televisions on January 1, 2017, at a total price of €40,000 with a warranty guarantee that the product was free of any defects. The assurance warranties extend for a 2-year period and are estimated to cost €500. Main also sold extended warranties for €800 related to the televisions covering 2 additional years beyond the assurance warranty period. Actual warranty costs were €150 in 2017 and €350 in 2018. Prepare the journal entries that Main should make...

If quantity is 100 when price is $50, what is total revenue? Given a quantity of...

If quantity is 100 when price is $50, what is total revenue? Given a quantity of 1,000, a price of $10, and a total cost of $8,000, calculate total profit. On a monopoly graph, how do you find the profit maximizing level of output? At the intersection of demand and marginal cost and drop straight down. At the intersection of marginal revenue and marginal cost and drop straight down At the minimum of the average total cost curve and drop...

Company PVFV sells shoes at an average price of $100. The cost to produce each pair...

Company PVFV sells shoes at an average price of $100. The cost to produce each pair of shoes is $40. The company has annual fixed costs of $40,000. Four questions: What is the breakeven in terms of unit sales? Show calculations using 2 different methods. Include a written description of how the two methods approach the problem. What is the breakeven in terms of sales revenue?

Suppose a firm produces and sells Apply watchbands with these values: total fixed costs of $248,500;...

Suppose a firm produces and sells Apply watchbands with these values: total fixed costs of $248,500; variable cost per unit = $18; and selling price per unit = $49. What is the firm's break-even quantity?

Subjects