Solved

Use the Following to Answer Questions

Question 107

Multiple Choice

Use the following to answer questions:
Figure: Costs and Profits for Tomato Producers Use the following to answer questions: Figure: Costs and Profits for Tomato Producers   -(Figure: Costs and Profits for Tomato Producers)  Look at the figure Costs and Profits for Tomato Producers. The market for tomatoes is perfectly competitive. The market price of a bushel of tomatoes is $18. If the market price increases to $20, the farmer's marginal revenue _____ and the profit-maximizing output _____. A)  increases; increases B)  increases; decreases C)  decreases; increases D)  decreases; decreases
-(Figure: Costs and Profits for Tomato Producers) Look at the figure Costs and Profits for Tomato Producers. The market for tomatoes is perfectly competitive. The market price of a bushel of tomatoes is $18. If the market price increases to $20, the farmer's marginal revenue _____ and the profit-maximizing output _____.


A) increases; increases
B) increases; decreases
C) decreases; increases
D) decreases; decreases

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions