Use the Following to Answer Questions

question 162

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 the market price of a kilogram of tomatoes is $8,in the short run,the farmer's profit-maximizing output is _____ kilograms.

• A) 0
• B) 1
• C) 2.5
• D) 3

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Definitions:

Double Counting

An error in calculation or analysis occurring when the same item or transaction is counted more than once, leading to inaccurate results or conclusions.

Consolidation

The process of combining the financial statements of two or more entities into one set of financial statements, as if they were a single entity.

Subsidiary

A company that is controlled by another company, referred to as the parent company.

Net Assets

The total assets of an entity minus its total liabilities, representing the owners' equity in the company.