Use the Following to Answer Questions

Multiple Choice

Use the following to answer questions:
Figure: The Marginal Decision Rule
-(Figure: Marginal Decision Rule) Look at the figure The Marginal Decision Rule. To the left of point C (e.g., at q₁) :

A) economic profit is the vertical distance between curves B and MC.
B) the firm is not maximizing profits.
C) the firm is maximizing profits.
D) the firm should produce less.