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Figure: Costs and Profits for Tomato Producers
-(Figure: Costs and Profits for Tomato Producers)Use Figure: Costs and Profits for Tomato Producers.The market for tomatoes is perfectly competitive.The market price of a kilogram of tomatoes is $14.The farmer's total cost at the profit-maximizing number of kilograms is:

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Use the following to answer questions :
Figure: Costs and Profits for Tomato Producers 
-(Figure: Costs and Profits for Tomato Producers)Use Figure: Costs and Profits for Tomato Producers.The market for tomatoes is perfectly competitive.The market price of a kilogram of tomatoes is $14.The farmer's total cost at the profit-maximizing number of kilograms is:

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At the profit-maximizing quantity of 4 kilograms, the farmer's total cost is $56 ($8 fixed cost + $12 variable cost per kilogram). Since the market price is $14 per kilogram, the farmer's total revenue is $56 as well. This means that the farmer is breaking even (i.e. not making a profit nor a loss) at the profit-maximizing quantity.

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