The Figure Given Below Shows the Revenue and Cost Curves

question 63

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
-Product differentiation:

• A)is carried out by both perfectly competitive and monopolistically competitive firms.
• B)is succesful if a firm faces a relatively inelastic demand curve.
• C)does not allow the firm to raise its price without losing all of its customers.
• D)cannot be accomplished through advertising or trivial product changes.
• E)if carried out successfully enables the firms to enjoy market power.

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Definitions:

Slippery Slope Fallacy

A logical fallacy that occurs when an argument falsely assumes that one action will lead to a series of other actions resulting in a negative outcome, without providing evidence for such a causal chain.

Fallacy Of Composition

The erroneous reasoning that what is true of the parts must also be true of the whole.

Fallacy Of Division

A logical fallacy that occurs when one assumes that something true of a whole must also be true of its parts.

Hasty Generalization

A logical fallacy where a conclusion is drawn from insufficient evidence or sample size.