The profits or losses if the firm decides to produce 5 units and sell them at a rice of $30.00 each is losses of $5.
The profit or loss can be found by subtracting the costs and expenses of producing a good or service, from the selling price of that good or service.
In this case, the cost of producing each units of the product is $31.00. This means that the total cost for 5 units is:
= 31 x 5
= $155
The total profit or loss is:
= Total selling revenue - total cost
= (5 x 30) - 155
= -$5
Full question is:
The cost of producing a unit of shoes is $31. if the firm produces 5 units that it sells at a price of $30.00 each, what will its profits or losses equal?
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