Use the following figure to answer the question : Figure 9-3 : 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.
-At the profit-maximizing level of output in Figure 9-3,the profit of the firm is equal to the area given by _____.
A)RLMG
B)RGZW
C)RGCO
D)RGHS

Question

Use the following figure to answer the question : Figure 9-3 : 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. 
-At the profit-maximizing level of output in Figure 9-3,the profit of the firm is equal to the area given by _____.
A)RLMG 
B)RGZW 
C)RGCO 
D)RGHS

Quizplus · Accepted Answer

The profit of the firm is equal to the area given by RGZW because this area represents the difference between the total revenue and the total cost at the profit-maximizing level of output.

Use the Following Figure to Answer the Question : Figure