Sweet Husks is a perfectly competitive corn farm. Currently, the expected price of an ear of corn is $0.40 and, at its current production level, Sweet Husks has a marginal cost of $.30 per ear. The expected profit from producing an additional ear of corn is ________ _.

Question

Quizplus · Accepted Answer

The expected profit from producing an additional ear of corn is the difference between the expected price and the marginal cost, which is $0.10 ($0.40 - $0.30).

Sweet Husks Is a Perfectly Competitive Corn Farm