Figure 12-2

-Refer to Figure 12-2.What is the amount of profit if the firm produces Q₂ units?
A)It is equal to the vertical distance c to g.
B)It is equal to the vertical distance c to Q₂.
C)It is equal to the vertical distance g to Q₂.
D)It is equal to the vertical distance c to g multiplied by Q₂ units.

Question

Figure 12-2
 
-Refer to Figure 12-2.What is the amount of profit if the firm produces Q₂ units?
A)It is equal to the vertical distance c to g. 
B)It is equal to the vertical distance c to Q₂. 
C)It is equal to the vertical distance g to Q₂. 
D)It is equal to the vertical distance c to g multiplied by Q₂ units.

Quizplus · Accepted Answer

Profit is the vertical distance between the price line and the marginal cost curve. At Q₂, this distance is c to g.

Figure 12-2 -Refer to Figure 12-2.What Is the Amount of Profit If