Use the Following to Answer Questions

question 317

Multiple Choice

Use the following to answer questions:
Figure: Revenues, Costs, and Profits for Tomato Producers III
-(Figure: Revenues, Costs, and Profits for Tomato Producers III) Look at the 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.