Refer to the information provided in Figure 7.1 below to answer the following question(s). Figure 7.1
-Refer to Figure 7.1. A corn producer's profit is $1,500 and it is producing 500 bushels of output. Then he must have a cost per bushel of
A) $1.
B) $2.
C) $3.
D) $4.

Question

Refer to the information provided in Figure 7.1 below to answer the following question(s).  Figure 7.1
-Refer to Figure 7.1. A corn producer's profit is $1,500 and it is producing 500 bushels of output. Then he must have a cost per bushel of
A) $1. 
B) $2. 
C) $3. 
D) $4.

Quizplus · Accepted Answer

The profit is given as $1,500 for 500 bushels of output. To find the cost per bushel, we need to know the revenue per bushel. If we assume the revenue is all profit (which is not the case here, but we're missing the revenue information directly), we'd divide the profit by the number of bushels. However, since profit = revenue - costs, and we're only given profit, we cannot directly calculate the cost per bushel without the selling price. Assuming a mistake in the question's premise (as it doesn't provide enough information to directly calculate cost per bushel), if we interpret the question as aiming to find the cost given a profit of $1,500 from 500 bushels, we'd need the selling price per bushel to accurately calculate the cost per bushel. Without that, any calculation is speculative. However, if the intention was to find how much lower the costs are compared to revenue to achieve a $1,500 profit on 500 bushels, we still lack the necessary selling price to make this calculation.

Refer to the Information Provided in Figure 7