Question 4
[Maximum number: 1]
The table shows a firm's revenue and costs at different levels of output.
What is the firm's total supernormal profit at the profit-maximising level of output?
A
-15
B
10
C
30
D
120
CAIE A-Level Economics 7.5.10 Profit calculations
Practise calculating profit from revenue and cost data, including diagram areas for monopoly profit and normal profit output.
How this is tested
- calculate total profit from AR, ATC and output in a cost-revenue table
- use a monopoly diagram to select the rectangle measuring total supernormal profit
- find the output where price just covers fixed and variable costs, giving normal profit