Figure 9.4 Figure 9.4 shows short-run cost and demand curves for a monopolistically competitive firm in the market for designer watches.
-Refer to Figure 9.4.The area that represents the loss made by the firm is ______.

Question

Figure 9.4  Figure 9.4 shows short-run cost and demand curves for a monopolistically competitive firm in the market for designer watches.
-Refer to Figure 9.4.The area that represents the loss made by the firm is ______.

Quizplus · Accepted Answer

The area P₂cdP₃ represents the loss made by the firm, as it is the area where the firm's total costs exceed its total revenue.

Figure 94 Figure 9