Use the figure below to answer the following question. Figure 11.2.1
-Refer to Figure 11.2.1,which shows a perfectly competitive firm's total revenue and total cost curves.Which one of the following statements is false?

Question

Use the figure below to answer the following question.  Figure 11.2.1
-Refer to Figure 11.2.1,which shows a perfectly competitive firm's total revenue and total cost curves.Which one of the following statements is false?

Quizplus · Accepted Answer

At an output of Q₂ units a day, the economic profit is negative, indicating that the firm is incurring an economic loss. This can be seen from the fact that the total cost curve is above the total revenue curve at this level of output. Option A is true as economic profit is the difference between total revenue and total cost. Option B is true as at this output level, the total revenue and total cost curves intersect, indicating zero economic profit. Option C is true as at an output greater than Q₃ units a day, the total cost curve is above the total revenue curve, indicating a negative economic profit or economic loss. Option E is false as at an output less than Q₁ units a day, the total cost curve is still below the total revenue curve, indicating a positive economic profit.

Use the Figure Below to Answer the Following Question