Question

Can you show me how to calculate the Profit in this one? Help me please!

3ムS 29 34 45 455 55 ad

Answer 1

Ans: Before solving this question, one needs to understand how can we calculate profit.

Profit = Total Revenue - Total Cost

From the given ques, we can estimate that total cost will be equal to the wages given to the laborers, i.e., TC= L*W. Similarly. total revenue can be estimated by the price of the output produced, i.e, TR= P*Q.

Using the above formulae, given wages=$40 and price= $10

Q	L	TC (L*W)	TR (P*Q)	PROFIT (TR-TC)
10	1	40	100	60
19	2	80	190	110
27	3	120	270	150
34	4	160	340	180
40	5	200	400	200
45	6	240	450	210
49	7	280	490	210
52	8	320	520	200
54	9	360	540	180
55	10	400	550	150
385	55	2200	3850	1650

Total Profit= Total Revenue- Total Cost

or, 1650= 3850-2200