Question

question
at a price of $10 a firm is willing to sell 100 units of output. at this level of output, it costs the firm an average of $10 to produce a unit of output. what is the total profit of the firm?
provide your answer below:
profit = $□

Explanation:

Step1: Calculate total revenue

Total revenue = Price × Quantity. Here, price = $10 and quantity = 100. So, total revenue = $10×100 = $1000.

Step2: Calculate total cost

Total cost = Average - cost per - unit × Quantity. Average cost per unit = $10 and quantity = 100. So, total cost = $10×100 = $1000.

Step3: Calculate total profit

Total profit = Total revenue - Total cost. So, total profit = $1000 - $1000 = $0.

Answer:

$0