Use the Figure Below to Answer the Following Question

question 2

Multiple Choice

Use the figure below to answer the following question. Figure 11.2.1
-Refer to Figure 11.2.1,which shows a perfectly competitive firm's total revenue and total cost curves.Which one of the following statements is false?

• A)Economic profit is the vertical distance between the total revenue curve and the total cost curve.
• B)At an output of Q₁ units a day,the firm makes zero economic profit.
• C)At an output greater than Q₃ units a day,the firm incurs an economic loss.
• D)At an output of Q₂ units a day,the firm incurs an economic loss.
• E)At an output less than Q₁ units a day,the firm incurs an economic loss.

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Definitions:

Agents

Individuals or entities authorized to act on behalf of another person or entity, known as the principal, in legal or business matters.

Expressed Agency

A relationship where the agent's authority to act on behalf of the principal is explicitly stated in a contract or agreement.

Implied Agency

A relationship formed by the actions of the parties that indicates an agency relationship, even without a formal agreement.

Apparent Agency

An agency relationship created by operation of law when one party, by her actions, causes a third party to believe someone is her agent even though that person actually has no authority to act as her agent. Also called agency by estoppel.