Figure 12-2 -Refer to Figure 12-2. What Happens If the Firm Produces

question 281

Multiple Choice

Figure 12-2
-Refer to Figure 12-2. What happens if the firm produces more than Q₄ units?

• A) Its profit increases.
• B) It makes a loss.
• C) Its total revenue is increasing faster than its total cost.
• D) It could make a profit or a loss depending on what happens to demand.

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