Your condition on $d$ ensures that the intersections $a$ and $b$ between circles $C_3$ and $C_1$ and $C_2$ respectively, are at the same $y$-coordinate. Then the different slopes of $C_1$ and $C_2$ at these points ensure that the area is a local maximum. <br /> ![Annulus & Circle][1] [1]: https://i.sstatic.net/ilnoN.jpg