The following figure shows the marginal cost curve,average total cost curve,average variable cost curve,and marginal revenue curve for a firm for different levels of output.
Figure 9-3
-At the profit-maximizing level of output in Figure 9-3,the profit of the firm is equal to the area given by _____.
A)RLMG
B)RGZW
C)RGCO
D)RGHS

Question

The following figure shows the marginal cost curve,average total cost curve,average variable cost curve,and marginal revenue curve for a firm for different levels of output.
Figure 9-3 
-At the profit-maximizing level of output in Figure 9-3,the profit of the firm is equal to the area given by _____.
A)RLMG 
B)RGZW 
C)RGCO 
D)RGHS

Quizplus · Accepted Answer

The profit of the firm is equal to the area given by RGZW because this area represents the difference between total revenue and total cost at the profit-maximizing level of output.

The Following Figure Shows the Marginal Cost Curve,average Total Cost