What is the maximum amount of profit the perfectly competitive firm depicted below could earn in the short run?

Question

Quizplus · Accepted Answer

The maximum profit that the firm can earn in the short run is equal to the difference between total revenue and total variable cost. In this case, the firm's total revenue is $1,200 (price of $30 times quantity of 40). The total variable cost is $80 (total variable cost of $2 times quantity of 40). Therefore, the maximum profit the firm could earn in the short run is $1,120 (total revenue of $1,200 minus total variable cost of $80).

What Is the Maximum Amount of Profit the Perfectly Competitive