Use the Following to Answer Questions

Multiple Choice

Use the following to answer questions:
Figure: The Profit-Maximizing Firm in the Short Run
-(Figure: The Profit-Maximizing Firm in the Short Run) Look at the figure The Profit-Maximizing Firm in the Short Run. Which of the following statements is TRUE?

A) AFC is represented by the vertical distance between curve M and curve N at any level of output.
B) AFC is represented by the vertical distance between curve N and curve O at any level of output.
C) This figure illustrates the long run because all costs are variable.
D) Quantity q₂ is to the left of the shut-down point.