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13 June, 13:22

The market price for tennis balls is currently $2 At this price, a firm is willing and able to produce 80 tennis balls. However, at this level of production, the firm experiences an average total cost of $0.50 per tennis ball. What is the profit for this firm

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  1. 13 June, 15:45
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    The market price for tennis balls is currently $2 At this price, a firm is willing and able to produce 80 tennis balls. However, at this level of production, the firm experiences an average total cost of $0.50 per tennis ball. What is the profit for this firm

    $120

    Explanation:

    $2 each per tennis ball

    80 tennis balls produced yields = 160$

    total cost per ball is $0.50

    then it would be 0.50 x 80 = 40

    160-40 = $120 profit
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