Use the Following to Answer Question

question 293

Multiple Choice

Use the following to answer question:
-(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 bushel of tomatoes is $12,in the short run 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.

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Definitions:

European Union

A political and economic union of 27 European countries that are located primarily in Europe, aiming to ensure the free movement of people, goods, services, and capital among its members.

Agricultural Imports

Goods brought into a nation that are produced by the agriculture sector of another country.

Government Price Supports

Economic policies or subsidies implemented by the government to maintain the market price of a commodity or product above its equilibrium level.

Surplus Production

The condition where the quantity of goods produced exceeds the quantity of goods consumed.