Refer to the accompanying graph to answer the questions that follow.

-If the firm is maximizing profits,profit is represented by the area:

Question

Refer to the accompanying graph to answer the questions that follow.
 
-If the firm is maximizing profits,profit is represented by the area:

Quizplus · Accepted Answer

The firm's profit is represented by the area between the total revenue (TR) and total cost (TC) curves. This is the rectangle formed by points A, B, C, and D. The profit-maximizing quantity is where the marginal revenue (MR) equals the marginal cost (MC), which is at point E. At this quantity, the profit-maximizing price is P. The profit-maximizing profit is the area of the rectangle formed by points A, B, C, and D, which is (A - B). Therefore, the correct answer is (C).

Refer to the Accompanying Graph to Answer the Questions That