The Figure Given Below Shows the Revenue and Cost Curves

question 21

Multiple Choice

The figure given below shows the revenue and cost curves of a perfectly competitive firm. Figure 9.2
MC: Marginal cost curve
MR: Marginal revenue curve
ATC: Average-total-cost curve
AVC: Average-variable-cost curve
-Refer to Figure 9.2.If the marginal-revenue curve would have intersected the average-total-cost curve at the latter's lowest point and the firm maximized profit,then total profit would have been equal to:

• A)$30.
• B)zero.
• C)-$10.
• D)$20.
• E)-$20.

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Definitions:

Deeply Rooted

Describes beliefs, values, or situations that are firmly established and not easily changed.

Intangibles

Assets or values that cannot be physically touched, such as goodwill, brand recognition, or intellectual property.

Tangibles

Physical items or properties that can be seen, touched, or measured.

Logrolling

Logrolling involves the exchange of favors, especially in politics, by reciprocal voting for each other's proposed legislation.