Use the Following Figure to Answer the Question : Figure

question 43

Multiple Choice

Use the following figure to answer the question : Figure 9-1 : shows the total cost and total revenue for a firm when it prices its products at $8 and $10.

-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.

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