3. A firm has the capacity to produce 1,000,000 units of product per year. At present, it is able to produce and sell 600,000 units yearly at a total income of P720,000. Annual fixed costs are P250,000 and the variable cost per unit is PO.70. What is the firm annual profit or loss for this production?

3. A firm has the capacity to produce 1,000,000 units of product per year. At present, it is able to produce and sell 600,000 units yearly at a total income of P720,000. Annual fixed costs are P250,000 and the variable cost per unit is PO.70. What is the firm annual profit or loss for this production?

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter6: Proudction Costs

Section: Chapter Questions

Problem 8SQP

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