28. Please refer to the graph above. At which point is your business breaking-ev

Question

28. Please refer to the graph above. At which point is your business breaking-even?

A. A

B. B

C. C

D. D

29. Please refer to the graph above. At which point is your business shutting-down?

A. A

B. B

C. C

D. D

30. Please refer to the graph above. At which point is your business maximizing profit?

A. C

B. None given

C. E

D. F

31. Please refer to the graph above. What is your business experiencing based on the numbers?

A. No profits

B. Negative profits

C. None given

D. Total losses

Explanation / Answer

28. Please refer to the graph above. At which point is your business breaking-even?

C. C

(Because here MC cuts minimum of ATC)

29. Please refer to the graph above. At which point is your business shutting-down?

B. B

(Because here ATC>MC)

30. Please refer to the graph above. At which point is your business maximizing profit?

D. F

(Because at this point distance between MC and ATC is maximum)

31. Please refer to the graph above. What is your business experiencing based on the numbers?

A. No profits

(Zero profits in the long run, as firms will exit in case of high losses and enter in case of high profits, thereby putting profit values in the long run to 0)

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