Question

Marla sells grapes in a perfectly competitive market. The market price for 1 ton of grapes is $1,000. Marla has 5 tons of grapes to sell. If her total variable cost is $4,600 and her total fixed cost is $400, then Marla is making a normal profit. False True

Answer 1

Based on Maria's variable and fixed costs as well as the market price for grapes, then Maria is making a normal profit so this is TRUE.

What is Marla's profit?

This can be found as:

= (Tons of grapes to sell x Market price) - variable cost - fixed cost

Solving gives:

= (5 x 1,000) - 4,600 - 400

= $0

This is a normal profit because normal profits are defined as earning $0 net profit or breaking even.

Find out more on normal profits at https://brainly.com/question/3522161.

#SPJ1