Strawberries are produced in a perfectly competitive market. Average consumer incomes decrease. This will cause the individual strawberry farmer's marginal revenue to ________ and their profit-maximizing level of output to ________.

A) increase; increase
B) increase; decrease
C) decrease; increase
D) decrease; decrease

Marginal Revenue

The additional income received from selling one more unit of a product or service.

Profit-maximizing

The effort of a firm to adjust its production and sales strategies to generate the highest possible profit, taking into account cost and revenue curves.

Perfectly Competitive Market

A theoretical market structure where many buyers and sellers exchange identical products, and no single entity can influence the market price.