Suppose That You Have Returned from Your Fishing Expedition with 20,000

question 85

Multiple Choice

Suppose that you have returned from your fishing expedition with 20,000 fish. The market price is $3 per fish. Your average fixed cost was $1 and your total variable cost was $5,000. If the price jumps to $3.50 before you sell your first fish, how much extra profit, if any, do you earn?

• A) $10,000.
• B) $25,000.
• C) $30,000.
• D) $45,000.
• E) $70,000.

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