FIGURE 12-7
-Figure 12-7 above shows that by selling 800 pictures the firm will
A)break even.
B)incur a loss.
C)earn a profit.
D)have no fixed costs.
E)have no variable costs.

Name: FIGURE 12-7 -Figure 12-7 above shows that by selling 800 pictures the firm will A)break even. B)incur a loss. C)earn a profit. D)have no fixed costs. E)have no variable costs.
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Question

FIGURE 12-7 
-Figure 12-7 above shows that by selling 800 pictures the firm will
A)break even. 
B)incur a loss. 
C)earn a profit. 
D)have no fixed costs. 
E)have no variable costs.

Quizplus · Accepted Answer

According to the graph, at 800 pictures sold, the total revenue and total cost intersect at a point where the firm earns a profit.

FIGURE 12-7 -Figure 12-7 Above Shows That by Selling 800 Pictures the 800