The Figure Given Below Shows the Cost and Revenue Curves

question 26

Multiple Choice

The figure given below shows the cost and revenue curves of a monopolist.Figure 11.9
D: Average revenue
MR: Marginal revenue
ATC: Average total cost
MC: Marginal cost
-Monopolistic competition is similar to perfect competition in that:

• A)there are only a few firms in the market.
• B)the entry into and exit from the market is easy.
• C)there are significant barriers to entry in the market.
• D)each firm sells a homogeneous product.
• E)each firm differentiates its product through advertising.

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Definitions:

Net Operating Income

The total profit of a company after operating expenses are subtracted from operating revenues but before incomes and taxes are accounted for.

Total Common Corporate Costs

The aggregate of all expenses shared across departments within a corporation, not directly attributed to specific departments or products.

Contribution Margin

The difference between a company's total sales revenue and its variable costs.

Fixed Costs

Expenses that remain constant for a certain level of production or period, inclusive of rent, salaries, and insurance.