Answer:
The correct answer is:
a. Jean should raise her price (b)
Explanation:
We have to choose an option that is correct, and in order to do so, we will first analyse the total amounts involved in Jeans cost price and selling price respectively.
Cost price = total variable cost + total fixed cost
= 3,300 + 300 = $3,600
Selling price;
price per bushel = $6
Number of bushels = 600
Therefore, total selling price = 6 × 600 = $3,600
From the analysis above you will discover that the cost price and the selling price is the same, and the purpose of going into business is to make profit, in keeping with this, the best option is option "a" ; Jean should raise her price.
The other options are wrong because, Jean is not earning positive economic profit (b), she is not making profit at all,
Jean is not making a loss, so option (c), is wrong.
Jean is not making profit, so option (d) is also wrong
