Question 1 (Multiple Choice Worth 4 points)
(03.05 MC)
Marginal Cost Analysis Graph
A marginal cost analysis graph with x axis Quantity and y axis Price. There are no units on the x or y axis, but assuming 0 to 10 for both axes. The marginal cost curve starts at 0, 4 and slopes down to 4, 2. It then rises from 4, 2 to 10, 10. There is a marginal cost line at extending from 0, 6 to 10, 6. The letters A to D are on the graph at the following locations: A 2, 2, B 6, 4, C 8, 6, D 10, 10.
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Trevor's company makes fine chocolates. He has figured out how to maximize his profit What letter on the graph represents Trevor's situation?
Question 2 (Multiple Choice Worth 4 points)
(03.06 MC)