A perfectly competitive apple farm produces 1000 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.
A) Loss of $14 000
B) Profit of $14 000
C) Profit of $50 000
D) There is insufficient information to answer the question.

Question

Quizplus · Accepted Answer

The revenue of the farm is ($50/bushel x 1000 bushels) = $50 000. 
The total cost of producing 1000 bushels of apples is $36 000. 
Therefore, the profit is $50 000 - $36 000 = $14 000.

A Perfectly Competitive Apple Farm Produces 1000 Bushels of Apples