The market price of a pizza is Rs 300. Corresponding to an output of 120 units, the average total cost of producing a pizza is Rs 250. Calculate his total profit at this output level.

Rs 2000

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Rs 3000

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Rs 4000

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Rs 6000

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Solution

The correct option is D
Rs 6000

$P r o f i t = (P - S A C) \times q = (300 - 250) \times 120 = R s 6000$

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The market price of a pizza is Rs 300. Corresponding to an output of 120 units, the average total cost of producing a pizza is Rs 250. Calculate his total profit at this output level.

The correct option is D Rs 6000 Profit=(P−SAC)×q=(300−250)×120=Rs 6000

The correct option is D
Rs 6000

$P r o f i t = (P - S A C) \times q = (300 - 250) \times 120 = R s 6000$