A firm has the capacity to produce 1,000,000 units of a product each
Q3. A firm has the capacity to produce 1,000,000 units of a product each year. At present, it is operating at 70 percent of capacity. The firm’s annual revenue is $700,000. Annual fixed costs are $300,000, and the variable costs are $0.50 per unit. The following equations will be useful. Profit = Revenue – Costs Revenue = Price each * quantity Costs = […]