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:

Retained Earnings

The portion of net earnings not distributed as dividends to shareholders but retained by the company to reinvest in its core business or to pay debt.

Net Income

The total profit of a company after all expenses, taxes, and costs have been deducted from total revenue.

Dividend

A payout of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders.

Treasury Stock

Treasury stock represents shares of a company's own stock that it has reacquired and holds, which do not confer voting rights or dividend payments.