The Figure Given Below Shows the Cost and Revenue Curves

question 93

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
-In the short-run, a monopolistically competitive firm:

• A)can earn only a normal profit.
• B)will produce at the point where marginal revenue is greater than marginal cost, in order to maximize profits.
• C)will produce at the point at which price equals minimum ATC, to maximize profits.
• D)will charge a price equal to its marginal revenue.
• E)will shut down temporarily if price is less than AVC.

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Definitions:

Chunking

A strategy for making more efficient use of short-term memory by grouping information into larger units.

Relearning

The process of learning material or skills for a second time, often more quickly than the first, indicating the retention of latent knowledge.

Encoding

The process by which information is transformed into formats that can be stored in memory.

Memory Acquisition

The process of obtaining new information and transferring it into memory.