Question

question a firm estimates its average total cost at 90 units of output to be $15. if the firm can sell all of its output at a market price of $5, what is its total profit? provide your answer below: profit = - $□

Explanation:

Step1: Calculate total cost

Total cost = Average total cost × Quantity. So, Total cost = $15\times90 = 1350$.

Step2: Calculate total revenue

Total revenue = Price × Quantity. So, Total revenue = $5\times90=450$.

Step3: Calculate total profit

Total profit = Total revenue - Total cost. So, Total profit = $450 - 1350=-900$.

Answer:

$900$