Reference no: EM132302827

Question Example:

Imran is a dairy farmer and currently has revenues of $40,314 per month. The only costs associated with running the farm are fixed costs of $89,743 per year. As a result of a large increase in demand for alternative forms of milk in the market Imran serves, he is deciding whether or not to start producing meat instead of milk. He estimates his revenues from producing meat will be $54,932 per month.

What is Imran's monthly economic loss from producing milk? Assume the same farm running costs apply to the meat option as well as the milk option. Answer as a positive number to the nearest whole value (with no decimal places, $ or - signs, spaces or commas).