The Figure Given Below Shows the Revenue and Cost Curves

question 49

Multiple Choice

The figure given below shows the revenue and cost curves of a perfectly competitive firm. Figure 9.5
MC: Marginal cost curve
MR: Marginal revenue curve.
ATC: Average-total-cost curve
AVC: Average-variable-cost curve
-According to Figure 9.5,the firm has:

• A)profits equal to the area AP₁EF.
• B)profits equal to the area P₁BDE.
• C)losses equal to the area 0AFQ₁.
• D)losses equal to the area P₁BDE.
• E)no profit no loss.

---

Definitions:

Effective Rate of Interest

The real rate of interest earned or paid over a period, considering compounding.

Compounded Options

Compounded options are not a standard financial term, suggesting a mix-up or confusion with terms related to compound interest or options trading. NO.

GICs

In Canada, Guaranteed Investment Certificates represent an investment option guaranteeing a fixed return rate over a certain time frame.

Annually

Happening annually or pertaining to a timeframe of one year.