When a firm produces one more unit of output the total revenue increases from $838 to $973, and the total cost increases from $514 to $686. When this last unit of output was produced, what was the change in profit? Enter a whole number with no dollar sign. Enter a negative sign if appropriate.

Question

Business

Jakayla Haas

12 December, 08:38

When a firm produces one more unit of output the total revenue increases from $838 to $973, and the total cost increases from $514 to $686. When this last unit of output was produced, what was the change in profit? Enter a whole number with no dollar sign. Enter a negative sign if appropriate.

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Answers (1)

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Elle Burch · Answer 1

the profit decrease - 37

Explanation:

First of all you need to calculate the profits between the first scenario

1st = revenue1 - total cost1

1st = 838-514 = 324 (profit)

secondly, you have to calculate the second scenario:

2nd = revenue 2 - total cost 2

2nd = 973 - 686 = 287 (profit)

Now that you have the two results need to calculate the difference

Profit 2 - Profit 1

287 - 324 = - 37

It means that the profit decrease - 37 and is equvalent to - 11,4%