Use the Following to Answer Question

Use the following to answer question:
-(Figure: The Profit-Maximizing Firm in the Short Run) Use Figure: The Profit-Maximizing Firm in the Short Run.Which statement 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.

Correct Answer:

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