The firm's profit equal? General accounting Assume a certain firm in a competitive market isproducing Q = 1,000 units of output. At Q = 1,000, thefirm's marginal cost equals $15 and its average totalcost equals $11. The firm sells its output for $12 perunit. At Q = 1,000, the firm's profits equal:A. $-5,000B. $2,500C. $5,000D. $1,000

Step 1: Definition of ProfitProfit is the difference between a firm's total revenue and total cost.…

Answered: Assume a certain firm in a competitive…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Only part d
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Assume a certain firm in a competitive market is producing Q = 1,000 units of output. At Q = 1,000, the firm's marginal cost equals $15 and its average total cost equals $11. The firm sells its output for $12 per unit. At Q = 1,000, the firm's profits equal: A. $-5,000 B. $2,500 C. $5,000 D. $1,000