Question

current objective understand two different formulas for calculating profit question a firm selling jet skis produces 18 jet skis and sells them at a price of $12,500 each. if the average total cost to produce 1 jet ski is $4,500 at this output level, what is the firms profit? provide your answer below: $

Explanation:

Step1: Calculate total revenue

Total revenue = Price per unit × Quantity
Total revenue = $12500\times18 = 225000$

Step2: Calculate total cost

Total cost = Average total cost per unit × Quantity
Total cost = $4500\times18=81000$

Step3: Calculate profit

Profit = Total revenue - Total cost
Profit = $225000 - 81000=144000$

Answer:

$144000$