A perfectly competitive apple farm produces 1000 bushels of apples at a total cost of $36 000.The price of each bushel is $50.The firm's short-run profit or loss is

Question

Quizplus · Accepted Answer

The total revenue for the apple farm is:
Price per bushel x Quantity produced = $50 x 1000 = $50 000
The total cost for the apple farm is $36 000.
Therefore, the short-run profit is:
Total revenue - Total cost = $50 000 - $36 000 = $14 000
Since the profit is positive, the correct answer is B, profit of $14 000.

A Perfectly Competitive Apple Farm Produces 1000 Bushels of Apples