The Following Figure Shows the Total Cost and Total Revenue

question 94

Multiple Choice

The following figure shows the total cost and total revenue for a firm when it prices its products at $8 and $10.
Figure 9-1
-In Figure 9-1,if the market price fell to $8 the firm would:

• A)decrease production to OJ and would be operating at a loss.
• B)decrease production to OJ and would be earning a normal return.
• C)decrease production to OF where it would break even.
• D)incur losses and shut down.