Refer to the Following Graph to Answer the Following Questions

question 15

Multiple Choice

Refer to the following graph to answer the following questions:

-In the long run,which of the following is true for the profit-maximizing firm?

• A) The firm's demand curve shifts leftward.
• B) The firm's average total cost curve shifts upward.
• C) Profit is $1,200 per day.
• D) Profit is $1,500 per day.
• E) The firm's average total cost curve shifts downward,while the marginal cost curve shifts upward.

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Definitions:

Workers

Individuals engaged in any form of productive activity, typically in exchange for wages or salaries.

Corporate Profits Tax

A levy placed on the profit of corporations, calculated as the net income of the firm after deducting costs and expenses.

Individual Income Tax Rate

The percentage of an individual’s income that is paid to the government as tax.

Partnerships

A type of business organization where two or more individuals own and operate the business, sharing profits and losses.