Question: Can you please explain why a) is FALSE? As A is below the equilibrium, it can increase its profit by decreasing the output, so I

Can you please explain why a) is FALSE?

As A is below the equilibrium, it can increase its profit by decreasing the output, so I thought a) is correct. Can you please clarify it?

A20. The following diagram depicts a firm's isoprofit curves and demand curve, given the economy-wide demand. Which of the following statements is /are correct? so-profit curves Price, p: dollars C B p* - - - W - - - - - Demand curve 9* Output, q a) At A, the Human Resources Department would be telling the Marketing Department to produce less. F

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