(Figure: Monopolistic Competition IV)Use Figure: Monopolistic Competition IV.The firm in the figure is producing at the output level that maximizes profits (minimizes losses).The shaded rectangle represents the firm's: Figure: Monopolistic Competition IV
A)profit.
B)loss.
C)fixed cost.
D)variable cost.

Question

(Figure: Monopolistic Competition IV)Use Figure: Monopolistic Competition IV.The firm in the figure is producing at the output level that maximizes profits (minimizes losses).The shaded rectangle represents the firm's: Figure: Monopolistic Competition IV 
A)profit. 
B)loss. 
C)fixed cost. 
D)variable cost.

Quizplus · Accepted Answer

The shaded rectangle in the figure represents the firm's profit. At the profit-maximizing output level, the firm's total revenue is higher than its total cost, resulting in a positive profit.