Figure 9-13

-Refer to Figure 9-13.When price rises from P₃ to P₄,the firm finds that
A)fixed costs are lower at a production level of Q₄.
B)it can earn a positive profit by increasing production to Q₄.
C)profit is still maximized at a production level of Q₃.
D)average revenue exceeds marginal revenue at a production level of Q₄.

Question

Figure 9-13
 
-Refer to Figure 9-13.When price rises from P₃ to P₄,the firm finds that
A)fixed costs are lower at a production level of Q₄. 
B)it can earn a positive profit by increasing production to Q₄. 
C)profit is still maximized at a production level of Q₃. 
D)average revenue exceeds marginal revenue at a production level of Q₄.

Quizplus · Accepted Answer

When the price rises from P₃ to P₄, the firm can increase production to Q₄ to earn a positive profit, as the higher price allows the firm to cover its costs and potentially earn a profit.

Figure 9-13 -Refer to Figure 9-13.When Price Rises from P₃ to P₄,the