In a situation when a firm is operating in a perfectly competitive firm and the total cost is given perfectly competitive firm and the total cost is given a...

Answer Details

Total cost (Tc) = N75.00
Price (P) = N7.00
Output (Q) = N25 units
Profit = ?
To derive the profit of the firm, the total revenue must be expressed. It can be expressed as
Total revenue (TR) = Price (P) × Quantity (q)
Therefore, TR = P × Q
= 7 × 25 units
Tr = N175
Therefore, Profit = TR – TC
= N175 – N75
Profit = N100