The firm represented by the diagram would maximize its profit where:
A. curves (2) and (1) intersect.
B. curve (1) touches the horizontal axis for the second time.
C. the vertical distance between curves (3) and (4) is the greatest.
D. curves (3) and (4) intersect.
C. the vertical distance between curves (3) and (4) is the greatest.
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Refer to the figure above. What is the total surplus after Lithasia opens up to free trade?
A) $15 B) $25 C) $27 D) $35
Which of the following statements is true of equilibrium?
A) Economic agents have an incentive to divert from equilibrium. B) Each economic agent can reach equilibrium irrespective of the actions of others. C) In equilibrium, the opportunity cost of the choices made by each economic agent is zero. D) In equilibrium, all economic agents are choosing the best feasible option simultaneously.