The Figure Given Below Shows the Revenue and Cost Curves

question 11

Multiple Choice

The figure given below shows the revenue and cost curves of a firm. MC represents the marginal cost curve, AC the average cost curve, MR the marginal revenue curve, and AR the average revenue curve.Figure 9.4

-In general, the two extreme cases of market structure models are represented by:

• A)monopolistic competition and oligopoly.
• B)oligopoly and monopoly.
• C)oligopoly and perfect competition.
• D)perfect competition and monopoly.
• E)perfect monopoly and oligopolistic competition.

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Definitions:

Fixed Expenses

Costs that remain constant for a given period of time regardless of the level of production or business activity.

Variable Expenses

Costs that vary directly and proportionally with the level of output or sales volume.

Increased Advertising

A strategy involving the amplification of efforts in promoting products or services to boost brand visibility and sales.

Sales

The total income a company generates from selling its goods or services.