Question on: JAMB Economics - 2023
If a business' total economic cost of producing 10,000 units of a product is N750,000 and this output is sold to consumers for N1,000,000, then the firm would earn
A
A normal profit of N750,000
B
An economic profit of N750,000
C
A normal profit o N1,750,000
D
An economic profit of N250,000
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Correct Option: D
Let's calculate the normal profit using the provided information:
Total economic cost = N750,000
Revenue from selling 10,000 units = N1,000,000
Normal Profit = Revenue - Economic Cost
Normal Profit = N1,000,000 - N750,000
Normal Profit = N250,000
Therefore, the business would earn a normal profit of N250,000.
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