The Figure Given Below Shows the Revenue and Cost Curves

question 34

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
-For years, Intel was able to charge a higher price for microchips because:

• A)it had a higher quality product than its rivals.
• B)it spent less on advertising than its rivals.
• C)consumers knew that Intel had the best employees.
• D)Intel relied more on foreign labor.
• E)of its successful product differentiation.

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Definitions:

Foreign Firm

A company that is incorporated under the laws of a country other than the one in which it does its main business.

Direct Quote

The value of foreign exchange quoted with the domestic currency for every unit of the overseas currency.

Reserve Currency

A foreign currency held in large amounts by governments and institutions as part of their foreign exchange reserves.

Financial Crisis

A situation where financial assets suddenly lose a large part of their nominal value, often leading to a collapse of markets and economies.