ary's marginal cost equals 10, if she does not incur any fixed costs, what is cary's total profit
Question
Question
Cary's marginal cost equals 10, if she does not incur any fixed costs, what is Cary's total profit?
Solution
To calculate Cary's total profit, we need more information than just the marginal cost. We also need to know the price at which Cary is selling the product and the quantity of the product sold.
The formula for total profit is:
Total Profit = Total Revenue - Total Cost
Where:
Total Revenue = Price * Quantity
Total Cost = Fixed Cost + Variable Cost
Since there are no fixed costs, the total cost is just the variable cost, which is the marginal cost times the quantity.
So, the formula becomes:
Total Profit = (Price * Quantity) - (Marginal Cost * Quantity)
Without the price and quantity information, we cannot calculate Cary's total profit.
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