If at optimum output of 1,000 units, the firm is incurring average variable cost per unit of $3, average fixed cost per unit of $1.50, and selling its output at $7 per unit, total profit is group of answer choices $1,500. $2,500. $250. $7,000.

$2500

Explanation:

Given: Total output(quantity)= 1000 units.

           average variable cost per unit= $3

           Average fixed cost per unit= $1.5

           Selling price per unit is $7

We know, Profit=

First, lets find out total cost

Total cost=

Remember, cost=

∴ Total cost= =

Now, finding total revenue.

Profit=

∴ Total profit=

Total profit= $2500

answer; i believe the correct answer is energy star;

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