The figure given below shows the revenue and cost curves of a perfectly competitive firm. Figure 9.5
MC: Marginal cost curve
MR: Marginal revenue curve.
ATC: Average-total-cost curve
AVC: Average-variable-cost curve
-According to Figure 9.5,the firm has:
A) profits equal to the area AP1EF.
B) profits equal to the area P1BDE.
C) losses equal to the area 0AFQ1.
D) losses equal to the area P1BDE.
E) no profit no loss.
Correct Answer:
Verified
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