Figure: Total Cost for Tomato Producers (Figure: Total Cost for Tomato Producers) Look at the figure Total Cost 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 $14.The farmer's total cost at the profit-maximizing number of bushels is:

Question

Figure: Total Cost for Tomato Producers  (Figure: Total Cost for Tomato Producers) Look at the figure Total Cost 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 $14.The farmer's total cost at the profit-maximizing number of bushels is:

Quizplus · Accepted Answer

The profit-maximizing output for a perfectly competitive firm is where marginal cost equals price. In this case, the marginal cost curve intersects the market price of $14 at a quantity of 4 bushels. At this output level, the total cost for the farmer is $56 (the point where the total cost curve intersects the quantity axis). Therefore, the answer is C, $56.