Figure 13-9

-Refer to Figure 13-9.Which of the graphs in the figure depicts a monopolistically competitive firm that is earning economic profits?
A)Panel A
B)Panel B
C)Panel C
D)Panel A and Panel B

Question

Figure 13-9
 
-Refer to Figure 13-9.Which of the graphs in the figure depicts a monopolistically competitive firm that is earning economic profits?
A)Panel A 
B)Panel B 
C)Panel C 
D)Panel A and Panel B

Quizplus · Accepted Answer

Panel A depicts a monopolistically competitive firm earning economic profits because the price is above the average total cost (ATC) at the quantity where marginal cost (MC) equals marginal revenue (MR).

Figure 13-9 -Refer to Figure 13-9.Which of the Graphs in the Figure