The Figure Given Below Shows the Revenue and Cost Curves

question 43

Multiple Choice

The figure given below shows the revenue and cost curves of a monopolistically competitive firm.Figure 12.4
MR: Marginal revenue curve
ATC: Average total cost curve
MC: Marginal cost curve
-Martin is in the market for a new television set. He is deciding between two sets: one is rather expensive but offers a guarantee; the other has a lower price but offers no guarantee. Martin's decision to buy the expensive set would indicate that:

• A)Martin does not know a good deal when he sees it.
• B)Martin interpreted the guarantee as a signal of quality.
• C)Martin did not shop around to get a better deal.
• D)Martin is not maximizing his utility.
• E)Martin has a high income.

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Definitions:

Bossy

Tending to give people orders in a domineering manner, often excessively and without proper authority.

Controlling

Exerting power or influence over others in a way that limits their autonomy or freedom.

High Neuroticism

An elevated level of the personality trait involving more frequent or intense experiences of negative emotions such as anxiety and depression.

Health Problems

Physical or mental conditions that affect an individual's well-being, ranging from minor illnesses to serious diseases.