Question
A firm has three different products where it can sell an input for that product on an external market: Product AAA, BBB, and CCC. The
A firm has three different products where it can sell an input for that product on an external market: Product AAA, BBB, and CCC. The inputs that can be sold for these products are aaa, bbb, and ccc, respectively. The inputs, aaa, bbb, and ccc are all byproducts of a common extraction process that costs the firm $54,070 per period.
aaa/AAA | bbb/BBB | ccc/CCC | |
Sales price of input on external market | $330,295 | $146,856 | $415,714 |
Cost to process further | $164,774 | $252,041 | $623,672 |
Sales price of processed good on external market | $1,225,133 | $119,080 | $1,927,324 |
What is the firm's profit, assuming it makes the most profitable sell-or-process-further decision for each product?
Round answer to whole dollars if necessary. Enter your answer as a number only (no dollar signs, commas, or decimals).
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