Homework Sourseconsider the cost data shown in the table below and indicate
consider the cost data shown in the table below, and indicate what the profit will be if the firm produces 6 units and charges a price of $40 each.
| Q | TC | TFC | TVC |
| 1 | $100 | $50 | $50 |
| 2 | 120 | 50 | 70 |
| 3 | 130 | 50 | 80 |
| 4 | 150 | 50 | 100 |
| 5 | 180 | 50 | 130 |
| 6 | 220 | 50 | 170 |
Solution
Profit = Total Revenue - Total cost
Price per unit is $40. Total revenue is $40 x 6 units = $240
Total cost is $220
Profit = $240-$220 = $20.
