Use the Following to Answer Questions

question 266

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) Use Figure: Revenues,Costs,and Profits for Tomato Producers III.The market for tomatoes is perfectly competitive.If market price of a kilogram of tomatoes is $18,in the short run,the farmer's profit-maximizing output is _____ kilograms.

• A) 2
• B) 3
• C) 4
• D) 5

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Definitions:

Earnings Per Share

A measure of a company's profitability, calculated as the profit available to common shareholders divided by the average number of common shares outstanding.

Working Capital

The variance between a business's present assets and its present debts, which demonstrates the firm's liquidity.

Common Stock

A type of equity security that represents ownership in a corporation, with rights to vote on corporate matters and receive dividends.

Market Price

The existing rate for buying or selling a product or service in a market environment.