In the Following Graph, MR and AR Represent the Marginal

question 76

Multiple Choice

In the following graph, MR and AR represent the marginal revenue and average revenue curves of a monopoly firm respectively. MC represents the marginal cost curve of the firm. Refer to the figure to answer the question. The profit-maximizing monopoly firm will produce output at the point where:

• A) marginal cost is decreasing.
• B) the marginal cost curve intersects the marginal revenue curve.
• C) the average revenue curve intersects the marginal cost curve.
• D) marginal cost is zero.

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Definitions:

Flexibility

In a physical context, it refers to the ability of the muscles and joints to move through their full range of motion; in a metaphorical sense, it denotes adaptability or willingness to change.

Personal Selling

A marketing approach involving direct interaction between a salesperson and a potential buyer to influence the latter's purchase decision.

Mass Production

The manufacturing of large quantities of standardized products often using assembly lines or automated technology, which can lead to economies of scale.