When Acme Dynamite Produces 250 Units of Output, Its Variable

question 36

Multiple Choice

When Acme Dynamite produces 250 units of output, its variable cost is $2,000, and its fixed cost is $500. It sells each unit of output for $25. When Acme Dynamite produces 250 units of output, its profit is:

• A)$6,250.
• B)$5,750.
• C)$4,250.
• D)$3,750.

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