The provided graph gives short-run data for a firm. Which of the following statements is correct?
A)Production is profitable only when price is above P₃.
B)Average fixed cost is ( P₃ - P₁)at output Q₄.
C)The firm will produce an output of Q₁ when price is P₁.
D)At price P₁, the firm will not supply any quantity.

Question

The provided graph gives short-run data for a firm. Which of the following statements is correct?
A)Production is profitable only when price is above P₃. 
B)Average fixed cost is ( P₃ - P₁)at output Q₄. 
C)The firm will produce an output of Q₁ when price is P₁. 
D)At price P₁, the firm will not supply any quantity.

Quizplus · Accepted Answer

The Answer of  The provided graph gives short-run data for a firm. Which of the following statements is correct?
A)Production is profitable only when price is above P₃. 
B)Average fixed cost is ( P₃ - P₁)at output Q₄. 
C)The firm will produce an output of Q₁ when price is P₁. 
D)At price P₁, the firm will not supply any quantity.

The Provided Graph Gives Short-Run Data for a Firm