The Figure Given Below Shows the Revenue and Cost Curves

question 69

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
-Firms in monopolistically competitive markets spend significant sums on product differentiation because:

• A)it enables them to earn positive profits in the short run.
• B)it increases the elasticity of demand for a firm's product.
• C)it reduces the number of competitors.
• D)it causes the firm's supply curve to become horizontal so the firm can expand output indefinitely.
• E)it causes the firm's demand curve to become horizontal so that it can charge a fixed price for its product.

Describe the general adaptation syndrome and the body's response to prolonged stress.

Relate the experience of stress to specific population groups, discerning how racism, prejudice, and significant life changes contribute to stress.

Acknowledge the support systems and coping strategies, like the tend-and-befriend response, in mitigating stress effects.

Understand the physiological responses of the body to stress.

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Definitions:

Unit Elastic

A situation in economics where a percentage change in price causes an equal percentage change in quantity demanded or supplied.

Elasticity

A measure in economics of how much the quantity demanded or supplied of a good changes in response to changes in its price or other factors.

Substitutes Available

Products or services that can be used in place of one another, providing consumers with choices in the marketplace.

Elastic

Describes a situation in which the quantity demanded or supplied changes significantly in response to a change in price.