The Following Figure Shows the Cost Curves of a Firm

question 6

Multiple Choice

The following figure shows the cost curves of a firm producing good X.

-Refer to Figure. The area EFGH is:

• A)the loss incurred by the firm when market price is $3.5.
• B)the profit earned by the firm when the market price is $3.5.
• C)the loss incurred by the firm when the market price is $5.
• D)the revenue earned by the firm when the market price is $5.

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Definitions:

Promotional Mix

The promotional mix is the combination of marketing communication tools and strategies a company uses to promote its brand or products, including advertising, sales promotion, public relations, personal selling, and direct marketing.

Major Tools

Primary instruments or resources used to carry out a specific task or function.

Differentiates Product

The process or strategy of making a product stand out from its competitors in the market.

Publicity

An aspect of public relations consisting of any message about your company communicated through the mass media that you do not pay for.