The Following Figures Show the Demand and Cost Curves of a Perfectly

question 35

Multiple Choice

The following figures show the demand and cost curves of a perfectly competitive and a monopoly firm respectively. Figure 10.7
D: Average Revenue
AC: Average cost
MC: Marginal cost
MR: Marginal cost
-Calculate the deadweight loss in Figure 10.7,if the perfectly competitive industry is monopolized after it had been producing an output of 10,000 units?

• A)The area P₂ACP₁
• B)The area ABC
• C)The area P₂ABP₁
• D)The distance AB
• E)There is no deadweight loss

---

Definitions:

Operating Activities

Activities directly related to the business's primary operations, including cash flows from sales, expenses, and cost of goods sold.

Total Assets

The total of a company's assets, encompassing both short-term and long-term assets.

Direct Method

In cash flow statement preparation, this approach lists the major categories of gross cash receipts and payments, offering more detail compared to the indirect method.

Operating Activities

Activities that relate to the primary operations of a company, including production, sales, and delivery of its products or services.