Figure 22-1 A graph shows Quantity on the horizontal axis and Price and Cost on the vertical axis. There are four values of quantity noted on the horizontal axis, listed in increasing order as follows: Q sub 1, Q sub 2, Q sub 3, and Q sub 4. A horizontal demand curve is placed with a vertical intercept that is above the origin, labeled d, MR. An upward-sloping straight line, labeled MC, is drawn from a point that is up and to the right of the origin and extends beyond the level of quantity labeled Q sub 4. At Q sub 1, the MC line lies below the horizontal line d, MR. At Q sub 2, the MC line intersects the line d, MR. At quantity levels Q sub 3 and Q sub 4, the MC line lies above the horizontal line d, MR. Refer to Figure 22-1. For the firm that faces the demand curve in the exhibit, a. price equals marginal revenue. b. marginal revenue is increasing. c. marginal revenue equals marginal cost at all levels of output. d. if the firm maximizes profits, it produces the quantity of output at which average total cost equals