At a price of $5 per pack, the raspberry farm produces 90 packs where P = MR = MC, and average cost at that quantity is $3.50. What is the farm's profit?

1. Profit can be found as (price minus average cost) times quantity. 2. Price minus average cost is $5.00 minus $3.50, which is $1.50 per pack. 3. Multiplying $1.50 by the 90 packs produced gives $135 in profit. 4. $450 is total revenue alone, price times quantity, before subtracting cost, so it overstates profit. 5. $315 is total cost alone, average cost times quantity, not the profit figure. 6. Since price is above average cost here, the firm is earning a profit, not breaking even at zero. _Source: OpenStax Principles of Microeconomics for AP Courses (CC BY 4.0), Ch 8 "Perfect Competition", section 8.2 | How Perfectly Competitive Firms Make Output Decisions_