A perfectly competitive apple farm produces 1,000 bushels of apples at a total cost of $36,000.The price of each bushel is $50.Calculate the firm's short-run profit or loss.

Question

Quizplus · Accepted Answer

The revenue earned by the firm is 1,000 bushels x $50/bushel = $50,000. 
The total cost of production is $36,000. 
Therefore, the short-run profit is: 
Profit = Revenue - Total Cost 
Profit = $50,000 - $36,000 
Profit = $14,000 
Hence, the firm has made a profit of $14,000.

A Perfectly Competitive Apple Farm Produces 1,000 Bushels of Apples