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64)Refer to Figure 12-2.Which of the following statements is true?A) Jason should produce whereMCequals $3 (pointd) where he will maximize his profit.B) Jason cannot earn a profit from selling any number of apples.C) Jason should produce whereMCequals $3 (pointd) where he will minimize his losses.D) Jason should produce where the distance betweenMCand his demand curve is greatest(pointAnswer: Ab).64)Diff: 2Page Ref: 406/406Topic: Profit-Maximizing Level of OutputLearning Outcome: Micro 13: Explain the relationship between production and profits under perfectcompetitionAACSB: Analytic Skills65)Refer to Figure 12-2.If Jason maximizes his profit he will produce the output rate indicated bypoint ________ and his average profit will equal ________.65)Diff: 2Page Ref: 406/406Topic: Profit-Maximizing Level of OutputLearning Outcome: Micro 13: Explain the relationship between production and profits under perfectcompetitionAACSB: Analytic Skills66) A perfectly competitive firm will maximize its profit at the rate of output where the verticaldistance between its total revenue and total cost is the largest. This is the same rate of outputwhere66)Diff: 2Page Ref: 403/403