Figure 14-6 Suppose a Firm Operating in a Competitive Market Has the Has

Multiple Choice

Figure 14-6
Suppose a firm operating in a competitive market has the following cost curves:
-Refer to Figure 14-6. When market price is P3, a profit-maximizing firm's total costs

A) can be represented by the area P2 × Q2.
B) can be represented by the area P3 × Q2.
C) can be represented by the area (P3-P2) × Q3.
D) are zero.