Figure: The Profit Maximizing Firm
(Figure: The Profit Maximizing Firm) Look at the figure The Profit Maximizing Firm.The figure shows cost curves for a firm operating in a perfectly competitive market.Which of the following statements is true?
A.AFC is represented in this figure by the vertical distance between curve M and curve N at any level of output.
B.AFC is represented in this figure by the vertical distance between curve N and curve O at any level of output.
C.This figure illustrates the long run because all costs are variable.
D.Quantity Q₂ is to the left of the shut-down point.

Question

Figure: The Profit Maximizing Firm
   (Figure: The Profit Maximizing Firm) Look at the figure The Profit Maximizing Firm.The figure shows cost curves for a firm operating in a perfectly competitive market.Which of the following statements is true? 
A.AFC is represented in this figure by the vertical distance between curve M and curve N at any level of output.
B.AFC is represented in this figure by the vertical distance between curve N and curve O at any level of output.
C.This figure illustrates the long run because all costs are variable.
D.Quantity Q₂ is to the left of the shut-down point.

Quizplus · Accepted Answer

The Answer of Figure: The Profit Maximizing Firm
   (Figure: The Profit Maximizing Firm) Look at the figure The Profit Maximizing Firm.The figure shows cost curves for a firm operating in a perfectly competitive market.Which of the following statements is true? 
A.AFC is represented in this figure by the vertical distance between curve M and curve N at any level of output.
B.AFC is represented in this figure by the vertical distance between curve N and curve O at any level of output.
C.This figure illustrates the long run because all costs are variable.
D.Quantity Q₂ is to the left of the shut-down point.

Figure: the Profit Maximizing Firm