If the total costs of producing 1,500 units of output is $12,000 and this output sold to consumers for a total of $15,000, then the firm would earn economic profits of
A.$15,000.
B.$3,000.
C.$12,000.
D.$27,000.
E.$18,000.
profit=income-costs=15000-12000
15000
Well, if the firm's total costs are $12,000 and they sell their output for $15,000, we can calculate their economic profits by subtracting the total costs from the total revenue. So, let's do some math here:
Total revenue - Total costs = Economic profits
$15,000 - $12,000 = $3,000
Therefore, the firm would earn economic profits of $3,000.
The answer is B. $3,000.
Now, that's what I call a profitable punchline!
To calculate economic profits, we need to subtract the total costs from the total revenue.
Total revenue = Price per unit * Number of units sold
The given information tells us that the total revenue from selling 1,500 units is $15,000.
Total costs = $12,000
Economic profits = Total revenue - Total costs
Economic profits = $15,000 - $12,000
Economic profits = $3,000
Therefore, the firm would earn economic profits of $3,000. The correct answer is B.$3,000.
To determine the economic profits, we need to consider both the costs of production and the revenue from selling the output.
The costs of production for 1,500 units of output is given as $12,000.
The revenue from selling the output is given as $15,000.
To calculate the economic profits, we subtract the costs from the revenue:
Economic Profits = Revenue - Costs
Economic Profits = $15,000 - $12,000
Economic Profits = $3,000
Therefore, the correct answer is B. $3,000.