Use the following to answer question(s):
Exhibit: Total Revenue, Total Cost, and Economic Profit

-(Exhibit: Total Revenue, Total Costs, and Economic Profit) At approximately 4,500 pounds of carrots:

Question

Use the following to answer question(s): 
Exhibit: Total Revenue, Total Cost, and Economic Profit
 
-(Exhibit: Total Revenue, Total Costs, and Economic Profit) At approximately 4,500 pounds of carrots:

Quizplus · Accepted Answer

At 4,500 pounds of carrots, the total revenue and total cost lines intersect, meaning that total revenue is equal to total cost. This also means that economic profit is equal to zero at this point. Therefore, option B is the correct answer. Option A is incorrect because the exhibit shows that economic profit is greater at lower levels of output. Option C is incorrect because the exhibit does not provide information on marginal revenue and marginal cost. Option D is incorrect because the exhibit does not show where marginal cost is at its maximum.

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