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TiliK225 [7]
3 years ago
12

When a firm produces one more unit of output the total revenue increases from $838 to $973, and the total cost increases from $5

14 to $686. When this last unit of output was produced, what was the change in profit? Enter a whole number with no dollar sign. Enter a negative sign if appropriate.
Business
1 answer:
joja [24]3 years ago
3 0

Answer:

the profit decrease -37

Explanation:

First of all you need to calculate the profits between the first scenario

1st= revenue1- total cost1

1st= 838-514 = 324 (profit)

secondly, you have to calculate the second scenario:

2nd = revenue 2- total cost 2

2nd= 973 - 686 =  287 (profit)

Now that you have the two results need to calculate the difference

Profit 2 - Profit 1

287 -324= -37

It means that the profit decrease -37 and is equvalent to -11,4%

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