Use the figure to answer the following question(s).
Figure 9-11

Which of the following represents the firm's total cost of producing the profit-maximizing output in Figure 9-11?
A) O CFK
B) O BGK
C) O AEL
D) O CHI

Question

Use the figure to answer the following question(s).
Figure 9-11

Which of the following represents the firm's total cost of producing the profit-maximizing output in Figure 9-11?
A) O CFK 
B) O BGK 
C) O AEL 
D) O CHI

Quizplus · Accepted Answer

The firm's total cost of producing the profit-maximizing output is represented by the area of O AEL. This is because the profit-maximizing output is where marginal cost equals marginal revenue (MC=MR), which is at point E. The total cost at this output is the sum of the fixed costs and variable costs up to point E, which is represented by the area O AEL. Therefore, choice C is the correct answer.

Use the Figure to Answer the Following Question(s)