Use the Figure Below to Answer the Following Question

question 87

Multiple Choice

Use the figure below to answer the following question.

Figure 12.2.1
-Refer to Figure 12.2.1, which shows a perfectly competitive firm's total revenue and total cost curves. Which one of the following statements is false?

• A)Economic profit is the vertical distance between the total revenue curve and the total cost curve.
• B)At an output of Q₁ units a day, the firm makes zero economic profit.
• C)At an output greater than Q₃ units a day, the firm incurs an economic loss.
• D)At an output of Q₂ units a day, the firm incurs an economic loss.
• E)At an output less than Q₁ units a day, the firm incurs an economic loss.

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Definitions:

Hierarchy Of Needs

A theory in psychology proposed by Abraham Maslow that posits a five-tier model of human needs, ranging from basic (physiological) to more complex (self-actualization) needs.

Abraham Maslow

An American psychologist known for creating Maslow's hierarchy of needs, a theory of psychological health predicated on fulfilling innate human needs.

Arousal Theory

A theory of motivation that suggests people seek to maintain an optimal level of arousal, not too high or too low, for optimal performance.

Instinct

An innate, typically fixed pattern of behavior in animals in response to certain stimuli, not learned through experience.