Exhibit 6-5 -Refer to Exhibit 6-5. Which of the following statements is not true? A)Fixed costs equal total costs when output equals zero. B)The output closest to the profit-maximizing level is Q₃. C)Profit is the same at Q₁ as it is at Q₄. D)Profit is equal to zero when output equals zero. E)Marginal cost is less than marginal revenue at Q₂.

Question

Quizplus · Accepted Answer

Option D is not true. Profit is not equal to zero when output equals zero. In fact, there is no output level at which profit is equal to zero in the given exhibit.

Exhibit 6-5 -Refer to Exhibit 6-5. Which of the Following Statements Is