Homework Answers
Answer - Option A
The firm is profitable because the profit of the firm is $ 23500
Total revenue = 20000*15
= $ 300000
Total cost = 240500 + 36000
= 276500
Profit = 300000-276500
= 23500
Also , per unit variable cost = 240500/20000
= $ 12
Price per unit = $ 15
Thus , the firm is definately earning profits.
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