Figure 9-13 -Refer to Figure 9-13.When Price Rises from P₃ to P₄,the

question 157

Multiple Choice

Figure 9-13

-Refer to Figure 9-13.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:

Subscriber

An investor who agrees to purchase stock in a new corporation.

Shareholders

Individuals or entities that own shares in a corporation, giving them partial ownership and typically the right to vote on corporate matters.

Debt

Debt is an amount of money borrowed by one party from another, typically with the arrangement that it will be paid back, often with interest.

De Jure Corporation

A corporation that has fully complied with all legal requirements for incorporation and therefore enjoys all the powers and rights granted to corporations under the law.