The figure depicts the demand curve of a firm producing cars, togetherwith its marginal cost, average cost, and isoprofit curves. Based on thisfigure, which of the following statements are correct?8,000Price, Marginal cost ($)0EQuantity of cars, QAt A, the firm makes positive profits.The firm makes the same profit at B and D.O Profit margin is the same at B and D.O The slope of the isoprofit is zero at D.MCIsoprofit AIsoprofit BAC100

The marginal benefit is the maximum amount that is willing to pay for an additional unit of goods…

The figure depicts the demand curve of a firm producing cars, together with its marginal cost, average cost, and isoprofit curves. Based on this figure, which of the following statements are correct? 8,000 Price, Marginal cost ($) 0 0 C E Quantity of cars, Q At A, the firm makes positive profits. The firm makes the same profit at B and D. O Profit margin is the same at B and D. The slope of the isoprofit is zero at D. MC Isoprofit A Isoprofit B AC 100

The figure depicts the demand curve of a firm producing cars, together with its marginal cost, average cost, and isoprofit curves. Based on this figure, which of the following statements are correct? 8,000 Price, Marginal cost ($) 0 0 C E Quantity of cars, Q At A, the firm makes positive profits. The firm makes the same profit at B and D. O Profit margin is the same at B and D. The slope of the isoprofit is zero at D. MC Isoprofit A Isoprofit B AC 100

Microeconomics

13th Edition

ISBN:9781337617406

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter9: Perfect Competition

Section9.2: Perfect Competition In The Short Run

Problem 3ST

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Figure 9-16 $/4 MC 6.70 6.00 ATC 4.90 AVC 4.00 = MR 2.80 2.60 12 14 If the price-taker fırm in Figure 9-16 9-16.png is currently producing 6 units, then to maximize profit in the short run, it should keep producing 6 units increase production to 12 units increase production to 14 units increase production to 8 units O shut down