Suppose a Perfectly Competitive Asparagus Farm Can Produce Six Containers

question 400

Multiple Choice

Suppose a perfectly competitive asparagus farm can produce six containers of asparagus at an output at which marginal cost equals marginal revenue. The price per container of asparagus is $100 and the average total cost is $75. What is the profit or loss that this asparagus farm is earning?

• A) $450.00
• B) $600.00
• C) $150.00
• D) -$450.00

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