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.

---

Definitions:

Rain Shadow Effect

A meteorological phenomenon where mountains block the passage of rain-producing weather systems, creating a dry area on the leeward side.

Vegetation

Plants in general, or the plant life of a particular area, ecosystem, or period.

Windward Side

The side of a mountain or island that faces the direction from which the wind is coming, typically receiving more rain and having more lush vegetation than the leeward side.

Leeward Side

The side of an island, mountain, or other landmass that is sheltered from the prevailing wind, typically receiving less rain and having different climatic conditions than the windward side.