Use the following to answer question 125:
Figure: Revenues,Costs,and Profits for Tomato Producers
-(Figure: Revenues,Costs,and Profits for Tomato Producers)Use Figure: Revenues,Costs,and Profits for Tomato Producers.The market for tomatoes is perfectly competitive.The market price of a kilogram of tomatoes is $18.At the profit-maximizing quantity of output in the figure,the farmer's total revenue is _____,total cost is _____,and economic profit is _____.

Question

Use the following to answer question 125:
Figure: Revenues,Costs,and Profits for Tomato Producers 
-(Figure: Revenues,Costs,and Profits for Tomato Producers)Use Figure: Revenues,Costs,and Profits for Tomato Producers.The market for tomatoes is perfectly competitive.The market price of a kilogram of tomatoes is $18.At the profit-maximizing quantity of output in the figure,the farmer's total revenue is _____,total cost is _____,and economic profit is _____.

Quizplus · Accepted Answer

At the profit-maximizing quantity, the quantity is 5 kilograms of tomatoes. 
Total Revenue = Price x Quantity = $18 x 5 = $90 
Total Cost = Variable Cost + Fixed Cost = $70 
Economic Profit = Total Revenue - Total Cost = $90 - $70 = $20.

Use the Following to Answer Question 125