Use the Following to Answer Questions

question 12

Multiple Choice

Use the following to answer questions :
Figure: Costs and Profits for Tomato Producers
-(Figure: Costs and Profits for Tomato Producers) Use Figure: Costs and Profits for Tomato Producers.The market for tomatoes is perfectly competitive.The market price of a kilogram of tomatoes is $18.If the market price falls to $16,the farmer's marginal revenue _____ and the profit-maximizing output _____.

• A) increases;decreases
• B) increases;increases
• C) decreases;increases
• D) decreases;decreases

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Definitions:

Labor Forces

Consists of all the people available to work in an economy, including both the employed and those seeking employment.

Light Industrial Production

Involves manufacturing activities that typically require a smaller space and less heavy machinery compared to heavy industrial production, focusing on products like electronics or textiles.

Productivity

The efficiency at which goods and services are produced, usually measured by the amount of output per unit of input over a specific period.

Economic Growth

An increase in the amount of goods and services produced per head of the population over a period of time, often measured by GDP.