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The above diagram illustrates the short run cost curves for Sarah Mat, a rice farmer in Queensland. Calculate the profit or loss for Sarah Mat and, examine the key characteristics for perfect competition
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The above diagram illustrates the short run cost curves for Sarah Mat, a rice farmer in Queensland. Calculate the profit or loss for Sarah Mat and, examine the key characteristics for perfect competition firm with reference to Sarah’s farm.

User Ialphan
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3 votes

Answer:

See explaination

Step-by-step explanation:

Setting P=MC, the firm will produce Q = 500 units

Profit = (40-34)*500= 3500

The firm is in short run as it will earn zero profits in the long run due to entry of new firms because of positive profits.

See attachment

The above diagram illustrates the short run cost curves for Sarah Mat, a rice farmer-example-1
User Eaweb
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