The Figure Given Below Shows the Revenue and Cost Curves

question 107

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
-When revenue is less than total cost but more than variable cost it implies that:

• A)the firm is enjoying positive economic profits.
• B)the firm is earning normal profits.
• C)the firm can cover its variable cost and a part of its fixed costs.
• D)the firm is unable to cover its costs and should shut down.
• E)the firm is able to cover both its fixed and variable costs.

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Definitions:

Employees' Contributions

The efforts, work, and achievements of employees in their roles, which contribute to the organization's goals and success.

Wegmans

A family-owned American supermarket chain known for its dedication to customer service, quality products, and employee welfare.

Economic Approach

The method of analyzing decisions based on comparing the costs and benefits of different actions, emphasizing efficiency and utility maximization.

Shareholder Value

The value delivered to shareholders as a result of the company's ability to generate earnings and increase its share price.