Figure: Revenues, Costs, and Profits III for Tomato Producers
(Figure: Revenues, Costs, and Profits III for Tomato Producers) Look at the figure Revenues, Costs, and Profits III for Tomato Producers.The market for tomatoes is perfectly competitive, and an individual tomato farmer faces the cost curves shown in the figure.If market price of a bushel of tomatoes is $12, this farm will:
A.minimize its losses by shutting down.
B.minimize its losses by continuing to produce.
C.break even.
D.earn an economic profit.

Question

Figure: Revenues, Costs, and Profits III for Tomato Producers
   (Figure: Revenues, Costs, and Profits III for Tomato Producers) Look at the figure Revenues, Costs, and Profits III for Tomato Producers.The market for tomatoes is perfectly competitive, and an individual tomato farmer faces the cost curves shown in the figure.If market price of a bushel of tomatoes is $12, this farm will: 
A.minimize its losses by shutting down.
B.minimize its losses by continuing to produce.
C.break even.
D.earn an economic profit.

Quizplus · Accepted Answer

The Answer of Figure: Revenues, Costs, and Profits III for Tomato Producers
   (Figure: Revenues, Costs, and Profits III for Tomato Producers) Look at the figure Revenues, Costs, and Profits III for Tomato Producers.The market for tomatoes is perfectly competitive, and an individual tomato farmer faces the cost curves shown in the figure.If market price of a bushel of tomatoes is $12, this farm will: 
A.minimize its losses by shutting down.
B.minimize its losses by continuing to produce.
C.break even.
D.earn an economic profit.