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The Figure Given Below Shows the Revenue and Cost Curves

Question 32

Multiple Choice

The figure given below shows the revenue and cost curves of a monopolistically competitive firm. Figure: 11.3 The figure given below shows the revenue and cost curves of a monopolistically competitive firm. Figure: 11.3   In the figure, D: Demand curve MR: Marginal revenue curve MC: Marginal cost curve ATC: Average total cost curve -The monopolistically competitive firm in Figure 11.3 will maximize profits (or minimize losses)  by producing _____ and charging _____. A) Q<sub>2</sub>; P<sub>6</sub> B) Q<sub>1</sub>; P<sub>1</sub> C) Q<sub>2</sub>; P<sub>2</sub> D) Q<sub>3</sub>; P<sub>3</sub> E) Q<sub>4</sub>; P<sub>5</sub> In the figure,
D: Demand curve
MR: Marginal revenue curve
MC: Marginal cost curve
ATC: Average total cost curve
-The monopolistically competitive firm in Figure 11.3 will maximize profits (or minimize losses) by producing _____ and charging _____.


A) Q2; P6
B) Q1; P1
C) Q2; P2
D) Q3; P3
E) Q4; P5

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