Multiple Choice
A company currently has total costs of \$4,096 when producing 128 units. If total fixed costs equal \$1,024, what is average variable cost?
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10. The Costs of Production
Revenue, Cost, and Profit
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If a firm produces 5 units and sells each for \$39.00, what is the firm's total revenue?
A
\$39.00
B
\$234.00
C
\$44.00
D
\$195.00
Verified step by step guidance1
Identify the quantity of units sold by the firm, which is given as 5 units.
Identify the price at which each unit is sold, which is \$39.00 per unit.
Recall the formula for total revenue (TR), which is the product of the quantity sold (Q) and the price per unit (P): \(TR = Q \times P\)
Substitute the given values into the formula: \(TR = 5 \times 39.00\)
Multiply the quantity by the price to find the total revenue, which will give the firm's total revenue.
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