Answered: Based on this graph, which of the…

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Economics

Based on this graph, which of the following statements is true at an output of 7,000 indicated by the green line?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

5,000
Total Cost
10,000
O a.) The profit is maximized.
Profit
Total Revenue
b.) The firm should increase output
15,000
Based on this graph, which of the following statements is true at an output of 7,000 indicated by
the green line?
Output
Oc.) The slopes of the total revenue and total cost curves are equal.
O d.) The cost is rising faster than the revenue.

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