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:

Measurable Performance

Refers to the ability to quantify or assess the effectiveness or output of an employee, project, or organization.

Skill-based Pay Plan

A compensation strategy where employees are paid based on the skills and knowledge they possess, rather than their job position or title.

Productivity

The efficacy and efficiency with which input resources (such as time, labor, and materials) are converted into outputs, such as goods or services.

Service Quality

The assessment of how well a delivered service matches customer expectations, often a critical component of customer satisfaction in business.