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Refer to the Above Diagram

Question 81

Multiple Choice

Refer to the above diagram.All data are for the short run.Which of the following statements is correct? A) Production is profitable only when price is at P<sub>2</sub>. B) Average fixed cost is P<sub>1</sub>P<sub>3</sub> at output Q<sub>1</sub>. C) The firm will produce an output of Q<sub>1</sub> when price is P<sub>1</sub>. D) At price P<sub>1</sub>,the firm will close down. Refer to the above diagram.All data are for the short run.Which of the following statements is correct?


A) Production is profitable only when price is at P2.
B) Average fixed cost is P1P3 at output Q1.
C) The firm will produce an output of Q1 when price is P1.
D) At price P1,the firm will close down.

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