Refer to Scenario 14-4. Calculate the firm's total revenue, total cost, and profit at 200 units of output.

Total Revenue

The complete total of earnings a firm gains through product sales or service charges over a set period.

Total Cost

The complete cost of production, including both fixed and variable costs. It represents the entire expense incurred in producing a good or service.

Apprehend the notion and repercussions of average and marginal costs in the scope of enterprise management.
Assess the financial performance in terms of profit or loss through analysis of total revenue, average revenue, and marginal revenue concepts.

Verified Answer

Final Answer :

TR = $20 X 200 = $4,000, TC = $23 X 200 = $4,600, Profit = $4,000 - $4,600 = $-600.

Learning Objectives

Apprehend the notion and repercussions of average and marginal costs in the scope of enterprise management.
Assess the financial performance in terms of profit or loss through analysis of total revenue, average revenue, and marginal revenue concepts.