The Figure Given Below Shows the Demand Curves of Two

question 8

Multiple Choice

The figure given below shows the demand curves of two classes of buyers, for tickets to a football match.Figure 11.4
D₁: Demand curve of group 1
D₂: Demand curve of group 2
MR₁: Marginal revenue of group 1
MR₂: Marginal revenue of group 2
MC: Marginal cost
-The perfectly competitive market structure results in economic efficiency because:

• A)price is equal to marginal revenue in the short run.
• B)firms are producing at the minimum point of the average-total-cost curve in the short run.
• C)a normal profit is being earned in the long run.
• D)a normal profit is being earned in the short run.
• E)in the long-run, price is equal to marginal cost and minimum average-total-cost.

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Definitions:

Identified

Recognized or distinguished as being a particular entity or belonging to a specific category or group.

Excused

Released from a duty or obligation, often because of a specific reason or circumstance that justifies the exemption.

Perfect Tender Rule

A legal principle that requires sellers to deliver goods exactly as specified in a contract without deviation.

Conformity

The act of matching attitudes, beliefs, and behaviors to group norms or standards.