The Diagram Below Shows the Market Demand Curve and the Cost

question 63

Multiple Choice

The diagram below shows the market demand curve and the cost curves for a single firm.
FIGURE 12- 6
-Refer to Figure 12- 6.Suppose this firm is being regulated using a policy of marginal- cost pricing.In this case,the firm would experience represented by the area .

• A)losses; edbc
• B)profits; edbc
• C)profits; P2P3ad
• D)losses; 0P2bQ2
• E)losses; P1P2bc

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Definitions:

Net Exports

The value of a country's total exports minus its total imports, a critical component of a nation's gross domestic product (GDP).

Saving

The act of setting aside a portion of current income for future use, typically by depositing money in savings accounts or investing in securities.

Diminishing Returns

The decrease in the marginal (incremental) output of a production process as the amount of a single factor of production is incrementally increased, keeping all other factors constant.

Foreign Portfolio Investment

Investment in financial assets from another country, such as stocks or bonds, which does not provide the investor with direct control over the assets.