-If the firm in this figure were producing at output level D, it would be:
A) breaking even.
B) incurring a loss because marginal cost is so high.
C) maximizing profit because D is the largest output of those given that the firm can produce.
D) none of the above.

Question

-If the firm in this figure were producing at output level D, it would be:
A) breaking even. 
B) incurring a loss because marginal cost is so high. 
C) maximizing profit because D is the largest output of those given that the firm can produce. 
D) none of the above.

Quizplus · Accepted Answer

At output level D, the firm's total revenue equals its total cost, so it is breaking even.

-If the Firm in This Figure Were Producing at Output