Use the following to answer questions:
Figure: Costs
-(Figure: Costs) Use the figure. At a price of $20, which statement is FALSE?
A) AC = $15
B) Profit = (20 - 15)15
C) Average profit = $5
D) MC

Question

Use the following to answer questions:
Figure: Costs 
-(Figure: Costs) Use the figure. At a price of $20, which statement is FALSE?
A) AC = $15 
B) Profit = (20 - 15)15 
C) Average profit = $5 
D) MC < AC

Quizplus · Accepted Answer

At a price of $20, if AC = $15, then MC must be equal to or greater than AC for profit maximization, making MC < AC false.

Use the Following to Answer Questions