Figure 14-1 The Graph Below Depicts the Cost Structure for a Firm

question 120

Multiple Choice

Figure 14-1
The graph below depicts the cost structure for a firm in a competitive market.

-Refer to Figure 14-1.When price rises from P₃ to P₄,the firm finds that

• A)fixed costs are lower at a production level of Q₄.
• B)it can earn a positive profit by increasing production to Q₄.
• C)profit is still maximized at a production level of Q₃.
• D)average revenue exceeds marginal revenue at a production level of Q₄.

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Definitions:

S are P

A logical structure indicating a relationship where "S" represents the subject and "P" the predicate, asserting that the subject belongs to the predicate category.

Venn Diagram

A diagrammatic representation used in set theory and logic to depict the relationships between sets through overlapping circles or shapes.

Universal Proposition

A categorical proposition that makes an assertion about all members of the class designated by its subject term (A and E).

S are P

A simplified expression of a categorical proposition where "S" is the subject term and "P" is the predicate term, typically used to state a general relationship or attribute shared by all members of S.