Figure: Costs Reference: Ref 11-6 (Figure: Costs) Use the figure. At a price of $20 which of the following statements is FALSE?
A) AC = $15
B) Profit = (20 - 15)15
C) Average profit = $5
D) MC

Name: Figure: Costs Reference: Ref 11-6 (Figure: Costs) Use the figure. At a price of $20 which of the following statements is FALSE? A) AC = $15 B) Profit = (20 - 15)15 C) Average profit = $5 D) MC < AC
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Question

Figure: Costs  Reference: Ref 11-6 (Figure: Costs) Use the figure. At a price of $20 which of the following statements is FALSE?
A) AC = $15 
B) Profit = (20 - 15)15 
C) Average profit = $5 
D) MC < AC

Quizplus · Accepted Answer

At a price of $20, MC is greater than AC, not less than AC. Therefore, statement D is false.

Figure: Costs Reference: Ref 11-6 (Figure: Costs) Use the Figure