A Perfectly Competitive Firm Produces 3,000 Units of a Good

question 93

Multiple Choice

A perfectly competitive firm produces 3,000 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 $6,000
• B)profit of $6,000
• C)profit of $30,000
• D)There is insufficient information to answer the question.

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Definitions:

Loanable Funds

Refers to the supply of capital or funds available for borrowing within an economy.

Interest Rates

The cost of borrowing money or the compensation for the service and risk of lending money, expressed as a percentage of the principal loan amount.

Interest

The price paid for borrowing money, often expressed as a percentage of the principal amount over a certain period.

Net Present Value

A financial metric that calculates the current value of a series of future cash flows by discounting them back to the present time.