To calculate the Average Profit (\(Pave\)):
\[ Pave = AR - AC \]
Where:
Average profit is the difference between the average revenue and the average cost. It represents the profit earned per unit of output on average.
Let's assume the following values:
Using the formula:
\[ Pave = 500 - 300 = 200 \text{ dollars} \]
The Average Profit is $200.
Let's assume the following values:
Using the formula:
\[ Pave = 750 - 450 = 300 \text{ dollars} \]
The Average Profit is $300.
