Figure 8-3 -A Company Draws Its Total Cost Curve and Total Revenue

question 222

Multiple Choice

Figure 8-3
-A company draws its total cost curve and total revenue curve on the same graph.If the firm wishes to maximize profits, it will select the output at which the

• A)vertical distance between the two curves is greatest.
• B)total cost curve cuts the total revenue curve.
• C)horizontal distance between the two curves is greatest.
• D)slope of the total revenue curve is greatest.

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