Use the Figure to Answer the Following Question(s)

question 173

Multiple Choice

Use the figure to answer the following question(s) .
Figure 9-5
-If the market price in Figure 9-5 increases to $4, what output should the firm produce, and what would be the firm's maximum profit?

• A) output, 3; maximum profit, $3 loss
• B) output, 5; maximum profit, zero
• C) output, 5; maximum profit, slightly less than $5
• D) output, 6; maximum profit, slightly less than $6

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