Figure 7-2 -Refer to Figure 7-2.Suppose the Firm Is Currently Producing Q₂

question 10

Multiple Choice

Figure 7-2
-Refer to Figure 7-2.Suppose the firm is currently producing Q₂ units.What happens if it expands output to Q₃ units?

• A) Its profit increases by the size of the vertical distance df.
• B) It makes less profit.
• C) It incurs a loss.
• D) It will be moving toward its profit-maximising output.