These are the cost and revenue curves associated with a monopolistically competitive firm.
According to the graph shown,area A represents:

Question

These are the cost and revenue curves associated with a monopolistically competitive firm. 
According to the graph shown,area A represents:

Quizplus · Accepted Answer

Area A represents profits earned in the short run. This is because in the short run, the firm is able to make positive profits, which is shown by the area between the average total cost curve (ATC) and the demand curve. In the long run, however, new firms will enter the market and the demand for the individual firm's product will decrease, causing the firm's ATC to increase and reducing its ability to make profits. Therefore, area A represents the profits earned in the short run only.

These Are the Cost and Revenue Curves Associated with a Monopolistically