The Figure Given Below Shows the Cost and Revenue Curves

question 28

Multiple Choice

The figure given below shows the cost and revenue curves of a monopolist.Figure 11.9
D: Average revenue
MR: Marginal revenue
ATC: Average total cost
MC: Marginal cost
-In long-run equilibrium, the monopolistically competitive firm:

• A)will break even.
• B)will cease to advertise.
• C)will earn a positive economic profit.
• D)will face a perfectly elastic demand curve.
• E)will no longer need to engage in non-price competition.

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Definitions:

Fundamental Attribution Error

The tendency to overemphasize personal characteristics and ignore situational factors when judging others' behaviors.

Standard Deviation

An indicator of how much the values in a dataset spread out or differ from each other.

Normal Curve

A bell-shaped curve that represents the distribution of many types of data where most occurrences take place in the middle of the range.

Probability

The measure or estimation of how likely it is that an event will occur, expressed as a number between 0 (impossible) and 1 (certain).