Answer to Question #24391 in Microeconomics for adam

Question

How to calculate profit knowing that a firm is producing 800 units of output at $1.50 and a market price of $2.60 with 1100 output

Answer 1

We need to evaluate Revenue of the firm
Revenue is equal to Price*Quantity= 800*$2.6=$ 2 080
Total costs are equal to Cost*Quantity = $1.50*800=$ 1 200
Profit is equal to Revenue- Total Cost = $2 080-$1 200=$880