2. the pps company sells lead pencils in a perfectly competitive market for $5 per box of a dozen pencils. the firm currently produces 2,500 boxes of lead pencils each week and average total cost at this level of production is $5.15. what level of profit is this firm earning? explain

Gross profit= -375

Explanation:

Giving the following information:

The PPS Company sells lead pencils in a perfectly competitive market for $5 per box of a dozen pencils. The firm currently produces 2,500 boxes of lead pencils each week and the average total cost at this level of production is $5.15.

Sales= 2,500*5= $12,500

Cost of goods sold= 2,500*5.15= $12,875

Gross profit= -375

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