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This means that the quantity of steel supplied was down, but the cost of energy and iron ore where passed on to the consumer. This is an example of how prices increase, cost of resources increase and the firm passes the additional cost on to there product or service which the consumer pays for. This is so the firm will still make normal profit; a normal profit is when total revenue equals total cost. ArcelorMittal was able to make an economic profit. Earning a economic profit is when the companies total revenue, which is the total dollar income earned by the firm from producing and selling a certain amount of output ( a particular good or service) exceed the total cost, and those are the cost a company pays for production...
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