Figure 13-3
Figure 13-3 shows short-run cost and demand curves for a monopolistically competitive firm in the market for designer watches.
-Refer to Figure 13-3.What is the area that represents the total variable cost of production?

Question

Figure 13-3 Figure 13-3 Figure 13-3 shows short-run cost and demand curves for a monopolistically competitive firm in the market for designer watches. -Refer to Figure 13-3.What is the area that represents the total variable cost of production? A) 0P0aQa B) 0P1bQa C) P0abP1 D) P1bdP3

Figure 13-3 Figure 13-3 shows short-run cost and demand curves for a monopolistically competitive firm in the market for designer watches. -Refer to Figure 13-3.What is the area that represents the total variable cost of production? A) 0P<sub>0</sub>aQ<sub>a</sub> B) 0P<sub>1</sub>bQ<sub>a</sub> C) P<sub>0</sub>abP<sub>1</sub> D) P<sub>1</sub>bdP<sub>3</sub>

Figure 13-3 shows short-run cost and demand curves for a monopolistically competitive firm in the market for designer watches.
-Refer to Figure 13-3.What is the area that represents the total variable cost of production?

Quizplus · Accepted Answer

The area that represents the total variable cost of production is the triangle between the origin (0), the point where the total variable cost curve (TVC) intersects the y-axis (11), and the point where the marginal cost curve (MC) intersects the x-axis (10). This area is indicated by the shaded region labeled "a" in the graph. Option B correctly identifies this area as 0P₁bQ_a.