(Figure: Price and Quantity IV) Which of the following statements is (are) TRUE? I. The firm earns $120 of profit at 24 units of output.
II) At prices above $5, the firm earns positive profit.
III) At a price of $4, the firm would produce more than 24 units of output to offset the lower price.

Question

(Figure: Price and Quantity IV) Which of the following statements is (are) TRUE?  I. The firm earns $120 of profit at 24 units of output.
II) At prices above $5, the firm earns positive profit.
III) At a price of $4, the firm would produce more than 24 units of output to offset the lower price.

Quizplus · Accepted Answer

The Answer of (Figure: Price and Quantity IV) Which of the following statements is (are) TRUE?  I. The firm earns $120 of profit at 24 units of output.
II) At prices above $5, the firm earns positive profit.
III) At a price of $4, the firm would produce more than 24 units of output to offset the lower price.

(Figure: Price and Quantity IV) Which of the Following Statements