A perfectly competitive firm produces 3000 units of a good at a total cost of $36 000.The price of each good is $10.Calculate the firm's short-run profit or loss.
A) Loss of $6000
B) Profit of $6000
C) Profit of $30 000
D) There is insufficient information to answer the question.

Question

Quizplus · Accepted Answer

The firm's total revenue is 3000 units * $10 = $30,000. The total cost is $36,000. Therefore, the firm incurs a loss of $36,000 - $30,000 = $6,000.

A Perfectly Competitive Firm Produces 3000 Units of a Good