The Figure Given Below Shows the Revenue and Cost Curves

question 95

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

-Why does a monopolist face the market demand curve?

• A)Presence of a large number of substitutes
• B)Presence of a large number of buyers in the market
• C)Barred entry of any new firm in the market
• D)Produces a homogeneous product
• E)Consumers have perfect knowledge of the market

---

Definitions:

Federal Comptroller

A government official responsible for supervising the quality and legality of financial and administrative operations in federal agencies.

Underwriting

The process by which insurers or lenders assess the risk of a potential client, deciding whether to accept the risk and on what terms, thereby determining the premium or interest rate.

Tombstone

A stone marker, typically inscribed, placed over a grave.

Limit Order

Order that puts a ceiling or floor on a security purchase or sale.