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, and an individual tomato farmer faces the cost curves shown in the figure.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

Question

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, and an individual tomato farmer faces the cost curves shown in the figure.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

Quizplus · Accepted Answer

The Answer of 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, and an individual tomato farmer faces the cost curves shown in the figure.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