Exhibit 22-4 -Refer to Exhibit 22-4. The firm sells its product at P 1 and produces Q 1 . Given this situation,

Total variable cost is area 1 + area 2, and total revenue is area 1.

Exhibit 22-4 -Refer to Exhibit 22-4. The firm sells its product at P 1 and produces Q 1 . Given this situation,

Total variable cost is area 1 + area 2, and total revenue is area 1.

Solved

Exhibit 22-4

Question 46

Multiple Choice

Exhibit 22-4

Exhibit 22-4 -Refer to Exhibit 22-4. The firm sells its product at P<sub>1</sub> and produces Q<sub>1</sub>. Given this situation, A) total variable cost is equal to area 1 + area 2. B) total revenue is equal to area 1. C) total cost is equal to area 2 + area 3. D) a and b E) a, b, and c
-Refer to Exhibit 22-4. The firm sells its product at P₁ and produces Q₁. Given this situation,

A) total variable cost is equal to area 1 + area 2.
B) total revenue is equal to area 1.
C) total cost is equal to area 2 + area 3.
D) a and b
E) a, b, and c

Correct Answer: