The Figures Given Below Represent the Revenue Curves of a Monopolist.Figure

question 78

Multiple Choice

The figures given below represent the revenue curves of a monopolist.Figure 11.2
TR: Total revenue curve
AR: Average revenue curve
MR: Marginal revenue curve
-According to Figure 11.2, at point C:

• A)price elasticity of demand is equal to infinity.
• B)price elasticity of supply is equal to 1.
• C)price elasticity of supply is greater than 1.
• D)price elasticity of demand is equal to 0.
• E)price elasticity of demand is equal to 1.

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Definitions:

Retained Earnings

Profits of a company that are not distributed as dividends but are instead reinvested in the business or kept as reserve.

Par Value

The face value of a bond or the stated value of a share of stock, as assigned by the issuing company.

Book Value

The worth of an asset as indicated by its balance sheet account balance, which considers the asset's original cost less any depreciation, amortization, or impairment charges.

Dividends in Arrears

Unpaid dividends on preferred stock that accumulate until paid by the corporation, often before any dividends can be paid on common stock.