Exhibit 24-6 Refer to Exhibit 24-6. In the exhibit, A)the demand curve and the marginal revenue curve are the same. B)the MC curve must have a downward-sloping portion and an upward-sloping portion. C)the MC curve must intersect the ATC curve at point A. D)if the firm produced Q₂, it would be taking a loss.

Question

Quizplus · Accepted Answer

The exhibit shows that the price (P) is below the average total cost (ATC) at the quantity produced (Q₂), indicating that the firm is taking a loss. The demand curve and marginal revenue curve are not necessarily the same, and there is no information about the shape of the marginal cost (MC) curve or its intersection with the ATC curve.

Exhibit 24-6 Refer to Exhibit 24-6. in the Exhibit