The Figure Given Below Shows the Revenue and Cost Curves

question 125

Multiple Choice

The figure given below shows the revenue and cost curves of a perfectly competitive firm.Figure 10.5
MC: Marginal cost curve
MR: Marginal revenue curve.ATC: Average-total-cost curve
AVC: Average-variable-cost curve
-A perfectly competitive firm's supply curve is the portion of the:

• A)TC curve that lies above the TR curve.
• B)MR curve that lies above the MC curve.
• C)AFC curve that lies above the AR curve.
• D)AVC curve that lies above the ATC curve.
• E)MC curve that lies above the AVC curve.

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Definitions:

Mental Efficiency

The effectiveness with which an individual can perform cognitive tasks, including problem-solving, memory, and reasoning.

Conformity Pressures

The pressure applied by a group that motivates individuals to modify their attitudes, values, or actions to conform with the norms of the group.

Polarization Theory

A theory suggesting that groups tend to make decisions that are more extreme than the initial inclination of its members.

Risky Shift Theory

suggests that people in groups tend to make riskier decisions compared to when making decisions alone due to diffused responsibility.