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

---

Definitions:

Follicle Stimulating Hormone

A hormone secreted by the anterior pituitary gland that promotes the formation of ova or sperm.

Granulosa Cells

Specialized cells found within the ovary that are involved in the development of the oocyte and the production of estrogen.

Theca Folliculi Cells

Cells surrounding the ovarian follicle that work together with granulosa cells to produce estrogen and other substances necessary for egg development.

Clitoris

A sensitive organ located at the front of the vulva in females, composed of erectile tissue and involved in sexual arousal and pleasure.