Figure 16-3 A graph of Price, P, versus Quantity, Q, shows a straight line, M R, decreasing linearly from (0, 1200) to (45, 0), a second straight line, D, decreasing linearly from (0, 1200) to (52.5, 500), a curved line, M C, decreasing from (15, 500), then reaching a minimum at (24, 300), then increasing to (42, 1200), and a second curved line, A T C, decreasing from (15, 1050), then reaching a minimum at (36, 675), then increasing to (60, 1150). M R and M C intersect at (30, 400). M C and A T C intersect at (36, 675). Refer to Figure 17-3. Assume the firm in the figure is currently producing 20 units of output and charging $925. The firm a. will increase its profits if it raises its price and expands its production level. b. will increase its profits if it raises its price and reduces its production level. c. is maximizing profits. d. will increase its profits if it lowers its price and expands its production level