Consider that your profit-maximizing quantity of 400 can be produced at an average cost per unit...

Consider that your profit-maximizing quantity of 400 can be produced at an average cost per unit of $10 and sold for a market price of $16.

What is your profit per unit? $

What is your total profit? $

Solutions

Expert Solution

Profit per unit is equal to $6

Calculated as Market price per unit - Average cost per unit ($16-$10=$6)

Total profit is $ 2,400

If the firm sells 400 units

Rahul Sunny answered 2 years ago

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