Refer to Scenario 14-2. When the firm produces 120 units of output, its profit is

A) $5,400.00.
B) $2,580.00.
C) $2,820.00.
D) $7,675.00.

Profit

The financial gain made in a transaction, calculated as the difference between the revenue received and the costs incurred.

Average Total Cost

The total cost of production (fixed plus variable costs) divided by the total quantity produced.

Output

Represents the total amount of goods and services produced by an economy over a specific period.