Final answer:
Based on the provided graphs, the farm is losing money as the total costs exceed total revenue at a market price of $2.00 per pack of frozen raspberries. The firm's total revenue is represented by a large shaded rectangle, and total costs by a rectangle extending up to the average cost times quantity, with the rose-shaded area illustrating losses.
Step-by-step explanation:
When interpreting the provided graphs and information, it is clear that the firm's total revenue is less than its total costs at a market price of $2.00 for a pack of frozen raspberries. At this price, the quantity where marginal revenue intersects marginal cost is 65 packs. However, since the average cost of producing 50 packs is about $2.73, when multiplied by 65, the total costs exceed the total revenue generated from selling 65 packs at $2 each. Therefore, the farm is incurring losses, which is illustrated by the rose-shaded area representing negative profit. This analysis points out that neither revenue continues to rise regardless of the change in price (statement C) nor do costs continue to fall due to an increase in revenue (statement B). Also, it contradicts statement D, as revenue does not rise up to approximately $17. The most accurate interpretation based on the given information would be closest to statement A: revenue falls and cost rises at approximately $17, and cost falls with revenue rising up to approximately $6 per pastry, but we lack specific data points beyond the scope of the provided information to fully validate this.