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-The Above Figure Illustrates a Firm's Total Revenue and Total

Question 118

Multiple Choice

-The above figure illustrates a firm's total revenue and total cost curves. Which one of the following statements is FALSE? A) Economic profit is the vertical distance between the total revenue curve and the total cost curve. B) At output Q<sub>1</sub> the firm makes zero economic profit. C) At an output above Q<sub>3</sub> the firm incurs an economic loss. D) At output Q<sub>2</sub> the firm incurs an economic loss.
-The above figure illustrates a firm's total revenue and total cost curves. Which one of the following statements is FALSE?


A) Economic profit is the vertical distance between the total revenue curve and the total cost curve.
B) At output Q1 the firm makes zero economic profit.
C) At an output above Q3 the firm incurs an economic loss.
D) At output Q2 the firm incurs an economic loss.

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