Graph 14-5
This Graph Depicts the Cost Structure $\Delta$

question 33

Multiple Choice

Graph 14-5
This graph depicts the cost structure of a firm in a competitive market. Use the graph to answer the following question(s) .
-Refer to Graph 14-5. When market price is P₁, a profit-maximising firm's total profit or loss can be represented by which area?

• A) (P₃ - P₁) * Q₂; loss
• B) P₁ * Q₃; profit
• C) (\(\Delta\)P₂ - P₁) * Q₁; loss
• D) we can't determine it because we don't know the fixed costs

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