The Figure Given Below Shows the Revenue and Cost Curves

question 60

Multiple Choice

The figure given below shows the revenue and cost curves of a perfectly competitive firm.Figure 10.2
MC: Marginal cost curve
MR: Marginal revenue curve
ATC: Average-total-cost curve
AVC: Average-variable-cost curve
-Refer to Figure 10.2. If the marginal-revenue curve would have intersected the average-total-cost curve at the latter's lowest point and the firm maximized profit, then total profit would have been equal to:

• A)$30.
• B)zero.
• C)-$10.
• D)$20.
• E)-$20.

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Definitions:

Initial Public Offering (IPO)

A company’s first equity issue made available to the public. Also an unseasoned new issue.

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Investors who provide capital to start-up companies and small businesses with perceived long-term growth potential.

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Pooled monetary contributions from different individuals or entities to invest in securities, designed to generate future retirement income for participants.