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.What is the area that represents the total variable cost of production?

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.What is the area that represents the total variable cost of production?

Quizplus · Accepted Answer

The total variable cost of production is represented by the area under the marginal cost curve up to the level of output produced, which is 0P₁bQ_a.

Figure 9-4 Figure 9-4 Shows Short-Run Cost and Demand