The Figure Given Below Shows the Revenue and Cost Curves

question 85

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
-One major similarity between perfect competition and monopolistic competition is that:

• A)the firms earn above normal profits in the long run.
• B)the firms are price makers.
• C)the firms produce identical products.
• D)the firms just break even in the long run.
• E)entry of firms is barred in the long run.

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Definitions:

Public Sector

The part of the economy composed of both public services and public enterprises, owned and operated by the government.

Paradox of Voting

A situation in which the costs of voting (time, effort) outweigh the apparent benefits, given the low probability of influencing the outcome.

Appeal

The process of requesting a higher court to review and change the decision of a lower court.

Special Benefits

Exclusive advantages or privileges granted to a specific group, individual, or organization, often not available to others.