A Perfectly Competitive Apple Farm Produces 1,000 Bushels of Apples

question 242

Multiple Choice

A perfectly competitive apple farm produces 1,000 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.

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Definitions:

Fixed Stream

A Fixed Stream is a type of investment return that provides a consistent, pre-determined series of payments over a specified period of time.

Financial Asset

Any asset that is cash, an ownership interest in an entity, or a contractual right to receive or deliver cash or another financial instrument.

Debt Securities

Financial instruments representing a loan made by an investor to a borrower, typically involving periodic interest payments and the return of the principal at maturity.

Life Insurance Reserves

Funds that life insurance companies are required to set aside to ensure they can meet future obligations to policyholders.