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Graph 14-6 This Graph Depicts the Cost Structure of a Firm

Question 104

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Graph 14-6  Graph 14-6   This graph depicts the cost structure of a firm in a competitive market.Use the graph to answer the following question(s) . -Refer to Graph 14-6.When market price is P₁, a profit-maximising firm's total profit or loss can be represented by which area? A) (P₃ - P₁)  * Q₂; loss B) P₁ * Q₃; profit C) ( \Delta P₂ - P₁)  * Q₁; loss D) we can't determine it because we don't know the fixed costs This graph depicts the cost structure of a firm in a competitive market.Use the graph to answer the following question(s) .
-Refer to Graph 14-6.When market price is P₁, a profit-maximising firm's total profit or loss can be represented by which area?


A) (P₃ - P₁) * Q₂; loss
B) P₁ * Q₃; profit
C) ( Δ\Delta P₂ - P₁) * Q₁; loss
D) we can't determine it because we don't know the fixed costs

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