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Figure: Revenues,Costs,and Profits for Tomato Producers III
-(Figure: Revenues,Costs,and Profits for Tomato Producers III)Use Figure: Revenues,Costs,and Profits for Tomato Producers III.The market for tomatoes is perfectly competitive.If the market price of a kilogram of tomatoes is $12,in the short run,this farm will:

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Figure: Revenues,Costs,and Profits for Tomato Producers III 
-(Figure: Revenues,Costs,and Profits for Tomato Producers III)Use Figure: Revenues,Costs,and Profits for Tomato Producers III.The market for tomatoes is perfectly competitive.If the market price of a kilogram of tomatoes is $12,in the short run,this farm will:

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In the short run, the farm should continue to produce as long as the price of tomatoes covers its variable costs. Looking at the graph, we can see that at a price of $12, the total variable cost is approximately $10. At this price, the farm would still incur a loss, but it would be minimized by continuing to produce rather than shutting down. Therefore, the best choice would be to minimize its losses by continuing to produce.

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