Refer to Figure 9.1.The firm's profit stays the same whether it produces:

Question

Quizplus · Accepted Answer

Based on the graph given, the profit curve intersects the horizontal axis (i.e., the profit is zero) at the points that correspond to 0 and 85 units of output. This means that the firm can produce anywhere between 0 and 85 units of output and still make zero profit. Therefore, producing 0 or 85 units of output would be the best choice for the firm, as it would not make any profit but would also not incur any losses. Producing any other quantity of output would result in losses for the firm.