-In the above figure, if the price is P₁and the firm produced Q₃, the firm's economic profit is ________ than if it produced Q₁ and ________ than if it produced Q₂.

Question

Quizplus · Accepted Answer

The firm's economic profit is maximized at Q₃, where marginal cost equals marginal revenue. At Q₁, the firm is producing below the profit-maximizing output, so its economic profit is less than at Q₃. At Q₂, the firm is producing above the profit-maximizing output, so its economic profit is also less than at Q₃.

-In the Above Figure, If the Price Is P1 and

-In the Above Figure, If the Price Is P₁and