Asked by Daisy Farhm on Jul 26, 2024

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When it produces 500 units of output, a firm earns a profit of $20,000. If the firm sells its output for $65 per unit, then what is its average total cost?

Average Total Cost

The per-unit production cost, calculated by dividing the overall production cost by the number of units produced.

Profit

The financial gain achieved when the revenue from a business activity exceeds the expenses, costs, and taxes involved in sustaining the activity.

  • Analyze and elucidate the complete earnings and net profits with particular sales and expense data for a company within a competitive context.
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Ashley BurnsJul 26, 2024
Final Answer :
Profit = $20,000 = ($65 - ATC) X 500, so ATC = $25.