Use the following to answer question:
Figure: Revenues, Costs, and Profits for Tomato Producers
-(Figure: Revenues, Costs, and Profits for Tomato Producers) Look at the figure Revenues, Costs, and Profits for Tomato Producers. The market for tomatoes is perfectly competitive. The market price of a bushel of tomatoes is $18. At the profit-maximizing quantity of output in the figure, the farmer's total revenue is _____, total cost is _____, and profit is _____.

Question

Use the following to answer question:
Figure: Revenues, Costs, and Profits for Tomato Producers 
-(Figure: Revenues, Costs, and Profits for Tomato Producers) Look at the figure Revenues, Costs, and Profits for Tomato Producers. The market for tomatoes is perfectly competitive. The market price of a bushel of tomatoes is $18. At the profit-maximizing quantity of output in the figure, the farmer's total revenue is _____, total cost is _____, and profit is _____.

Quizplus · Accepted Answer

In a perfectly competitive market, profit is maximized where marginal cost equals marginal revenue (price). If the market price is $18, and the profit-maximizing quantity results in total revenue of $90 and total cost of $70, the profit is $20.

Use the Following to Answer Question