The Following Graph Shows the Demand and Cost Curves of an Imperfectly

question 101

Multiple Choice

The following graph shows the demand and cost curves of an imperfectly competitive firm.MC and ATC represent the marginal cost curve and the average cost curve respectively. Figure 8.1
- Refer to Figure 8.1.At price P₁ the firm sells quantity Q₁,and total revenue is shown by:

• A)the rectangle ABCD.
• B)the rectangle ABEF.
• C)the rectangle FECD.
• D)the distance AB.
• E)the distance BC.

---

Definitions:

Demand Instrument

A demand instrument is a financial document that requires payment of a specified sum of money immediately upon demand or within a short time frame.

Overdue

Refers to something being past its expected or scheduled time, often used in the context of payments or tasks.

Primarily Liable

Refers to the party that bears the first or main responsibility for fulfilling an obligation or debt.

Secondarily Liable

Liable for paying the amount designated on an instrument if the primarily liable party defaults.