Question

The Wax Works sells 400 candles at a price of​ $6 per candle. The Wax​ Works' total costs for producing 400 candles are​ $2500. The Wax​ Works' economic profit is

Answer 1

Answer:

The Wax​ Works' economic profit is -$100

Explanation:

Economic Profit : The economic profit is that profit which shows a difference between sales revenue, all types of cost such as explicit & implicit cost, and opportunity cost.

In mathematically,

Economic Profit = Selling cost - Total cost

where,

Selling cost = Selling Units × Price

                   = 400 × $6

                   = $2,400

And, total cost = Total cost Units × Price

                   = 400 × $6.25

                   = $2,500

Now, applying these values to the above equation.

So, economic profit = $2,400 - $2,500 = - $100

Hence, The Wax​ Works' economic profit is -$100