Multiple Choice
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 falls to $16, the farmer's marginal revenue _____ and the profit-maximizing output _____.
A) increases; decreases
B) increases; increases
C) decreases; increases
D) decreases; decreases
Correct Answer:

Verified
Correct Answer:
Verified
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