The following figure shows the marginal cost curve,average total cost curve,average variable cost curve,and marginal revenue curve for a firm for different levels of output.
Figure 9-3
-Refer to Figure 9-3.At the profit-maximizing level of output:
A)the firm is earning economic profit.
B)profits per unit are the highest.
C)profit equals ZC.
D)costs exceed revenue.

Question

The following figure shows the marginal cost curve,average total cost curve,average variable cost curve,and marginal revenue curve for a firm for different levels of output.
Figure 9-3 
-Refer to Figure 9-3.At the profit-maximizing level of output:
A)the firm is earning economic profit. 
B)profits per unit are the highest. 
C)profit equals ZC. 
D)costs exceed revenue.

Quizplus · Accepted Answer

At the profit-maximizing level of output, a firm is earning economic profit if total revenue exceeds total costs.

The Following Figure Shows the Marginal Cost Curve,average Total Cost