The Figure Given Below Shows Revenue and Cost Curves of a Monopolistically

question 87

Multiple Choice

The figure given below shows revenue and cost curves of a monopolistically competitive firm.Figure: 12.1
In the figure,
MR: Marginal revenue curve
ATC: Average total cost curve
AVC: Average variable cost curve
MC: Marginal cost curve
-Consider the monopolistically competitive firm described in the Figure 12.1. The profit-maximizing output level and price are _____ and _____ respectively.

• A)0; 0
• B)H; D
• C)I; A
• D)J; C
• E)J; E

---

Definitions:

Compounded Semi-annually

Interest that is calculated and added to the principal twice a year.

Semi-annual Payments

Payments made twice a year as a part of a financial agreement or loan.

Loan

Borrowed money that is expected to be paid back with interest.

Monthly Withdrawals

Regular amounts of money taken out from an account or investment every month.