The Figure Given Below Shows the Cost and Revenue Curves

question 36

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
-Which of the following statements about the monopolistically competitive market, in the long run, is true?

• A)The resources are efficiently utilized.
• B)The firms make above-normal profit in the long run.
• C)The marginal-revenue curve coincides with the demand curve facing the firm.
• D)The firms produce the output level that is less than the output corresponding to the minimum of average total cost.
• E)The firms operate on the upward-sloping portion of the long run average cost curve.

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Definitions:

Specifications

Detailed descriptions of the requirements, characteristics, or standards that an item, project, or process must meet.

Pooled Standard Deviation

A method to estimate the standard deviation across different samples or groups by combining their variances, assuming they have the same variance.

Control Limit

The upper and lower bounds on a control chart in statistical process control that signal when a process might be out of control or requires investigation.

Sample Means

The average values obtained from multiple subsets of a population.