At point D, the firm is 
A. making money.
B. losing money.
C. breaking even.
D. maximizing its profit.
Answer: C
You might also like to view...
The U-shape of the average variable, average total, and marginal cost curves reflects
A) increasing marginal returns. B) decreasing marginal returns. C) both increasing and decreasing marginal returns. D) decreasing marginal product. E) the point that implicit costs become a smaller fraction of total cost as output increases.
The marginal cost curve intersects the average fixed cost curve at its minimum
Indicate whether the statement is true or false
A firm's price-cost margin:
A. is the amount by which its price exceeds its marginal cost, expressed as a percentage of its price. B. is the amount by which its marginal cost exceeds its average cost. C. is the amount by which its average cost exceeds its marginal cost. D. is the value of its profit.
Refer to Figure 8.1. At the profit-maximizing level of output, total revenue is
A) $1200. B) $2160. C) $2400. D) $2680. E) $3160.