Figure 7-2 -Refer to Figure 7-2.What is the amount of profit if the firm produces Q₂ units? A) It is equal to the vertical distance c to g. B) It is equal to the vertical distance c to Q₂. C) It is equal to the vertical distance g to Q₂. D) It is equal to the vertical distance c to g multiplied by Q₂ units.

Question

Quizplus · Accepted Answer

Profit is the vertical distance between the price line and the marginal cost curve. At Q2 units, this distance is c to g.

Figure 7-2 -Refer to Figure 7-2.What Is the Amount of Profit If