Figure 13-5
-Refer to Figure 13-5.Which of the graphs in the figure depicts a monopolistically competitive firm that is minimizing its losses?
A)Panel A
B)Panel B
C)Panel C
D)Panel A and Panel C

Question

Figure 13-5 
-Refer to Figure 13-5.Which of the graphs in the figure depicts a monopolistically competitive firm that is minimizing its losses?
A)Panel A 
B)Panel B 
C)Panel C 
D)Panel A and Panel C

Quizplus · Accepted Answer

Panel C shows a monopolistically competitive firm that is minimizing its losses as the firm is producing at the lowest point on the ATC curve where MC=ATC, which is also the point at which price is tangent to the ATC curve. Panels A and B show a firm that is not minimizing its losses.

Figure 13-5 -Refer to Figure 13-5.Which of the Graphs in the Figure