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(Figure: Costs and Profits for Avocado Producers) Use Figure: Costs and Profits for Avocado Producers. The market for avocados is perfectly competitive. The market price
(Figure: Costs and Profits for Avocado Producers) Use Figure: Costs and Profits for Avocado Producers. The market for avocados is perfectly competitive. The market price of a bushel of avocados is $18. If the market price increases to $20, the farmer's marginal revenue and the profit-maximizing output Price per bushel Profit-maximizing $30 point 26 MC 22 E 18 14 MR = P = $18 ONOOB 1 2 3 5 6 Quantity of avocados (bushels) Oa, increases; increases Ob, increases; decreases Oc, decreases; increases O d, decreases; decreases
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