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 enclosed by the lines OAE and OEL. This includes both the fixed cost (represented by the distance between the vertical line through Q and the y-axis, or OA) and the variable cost (represented by the area enclosed by the lines OAE and the y-axis). Therefore, the answer is C, which represents the area OAELO.

Use the Figure to Answer the Following Question(s)