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The Figure Given Below Shows Revenue and Cost Curves of a Monopolistically

Question 10

Multiple Choice

The figure given below shows revenue and cost curves of a monopolistically competitive firm.Figure: 12.1
The figure given below shows revenue and cost curves of a monopolistically competitive firm.Figure: 12.1    In the figure, MR: Marginal revenue curve ATC: Average total cost curve AVC: Average variable cost curve MC: Marginal cost curve -According to Figure 12.1, the profit-maximizing firm is making an average: A) profit on each unit produced, equal to the distance BG. B) loss on each unit produced, equal to the distance BG. C) profit on each unit produced, equal to the distance CE. D) loss on each unit produced, equal to the distance DG. E) loss on each unit produced, equal to the distance AC. In the figure,
MR: Marginal revenue curve
ATC: Average total cost curve
AVC: Average variable cost curve
MC: Marginal cost curve
-According to Figure 12.1, the profit-maximizing firm is making an average:


A) profit on each unit produced, equal to the distance BG.
B) loss on each unit produced, equal to the distance BG.
C) profit on each unit produced, equal to the distance CE.
D) loss on each unit produced, equal to the distance DG.
E) loss on each unit produced, equal to the distance AC.

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