Use the Following Figure to Answer the Question : Figure

question 23

Multiple Choice

Use the following figure to answer the question : Figure 12-2 : shows the downward sloping demand and marginal revenue [MR] curves and the upward sloping marginal cost [MC] curve of a monopolist.
-Refer to Figure 12-2.Comparing the result of perfect competition with that of a perfectly price-discriminating monopolist,there is an efficiency loss equal to:

• A)area VWE.
• B)area HEF.
• C)area JHFK.
• D)zero.There will be no efficiency loss in either case.

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Definitions:

Just-In-Time

A production strategy that strives to improve a business's return on investment by reducing in-process inventory and associated carrying costs through timely procurement and shipment.

Prevention Costs

Costs incurred to prevent defects before they occur, including costs associated with design, training, and process control.

Appraisal Costs

Expenses associated with measuring, evaluating, or auditing products or services to ensure conformity to quality standards and performance requirements.

Environmental Costs

Environmental costs are expenses associated with the impact of an activity on the environment, including pollution mitigation, resource depletion, and habitat destruction.