Question

BreatheDeep, a monopolist, produces 10,000 doses of medicine for sever asthma at a cost of $4 per dose. If each dose is sold for $12, then BreatheDeep's total profit would be

Answer 1

Answer:

If all the doses were sold, the total profit would be of $80,000.

Explanation:

To obtain the economic gain of a business, the production cost must be subtracted from the sales value of the products sold. In the case, the 10,000 products were sold at $ 12, giving a total sales revenue of $ 120,000. But in turn, those 10,000 products cost $ 4 each, giving a total production cost of $ 40,000. Therefore, the profit of BreatheDeep, after subtracting production costs, is $ 80,000.