The Figure Given Below Shows the Revenue and Cost Curves

question 46

Multiple Choice

The figure given below shows the revenue and cost curves of a monopolistically competitive firm.Figure 12.4
MR: Marginal revenue curve
ATC: Average total cost curve
MC: Marginal cost curve
-A consumer becomes loyal to a product when:

• A)the good is available at a very low price.
• B)the product is as good as its substitutes.
• C)the product comes with a gift occasionally.
• D)he/she has had a positive experience with that good.
• E)discounts are offered periodically.

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Definitions:

Quantity Variance

The difference between the actual quantity of material used in production and the standard quantity expected to be used.

Direct Materials

Raw materials that can be directly associated with the production of a product and are an integral part of the finished product.

Actual Quantity

The real amount of goods or materials used in production, as opposed to the estimated or budgeted amount.

Price Variance

The difference between the expected cost of an item and its actual cost, often analyzed in budgeting and cost management.