Examlex

Solved

The Following Graph Shows a Firm Producing Jeans in a Monopolistically

question 9

Multiple Choice

The following graph shows a firm producing jeans in a monopolistically competitive market. The firm faces a downward-sloping, linear demand curve, D. The marginal revenue curve of the firm is shown by MR. AC and MC are the average total cost and marginal cost curves of the firm. Which of the following is most likely to be true of the firm at the profit-maximizing point?Figure 9.3: The following graph shows a firm producing jeans in a monopolistically competitive market. The firm faces a downward-sloping, linear demand curve, D. The marginal revenue curve of the firm is shown by MR. AC and MC are the average total cost and marginal cost curves of the firm. Which of the following is most likely to be true of the firm at the profit-maximizing point?Figure 9.3:   ​ A) The firm will earn $64,000 in profits B) The firm will earn $112,000 in profits. C) The firm will earn $30,000 in profits. D) The firm will earn zero economic profits. E) The firm will earn negative economic profits.


Definitions:

Pectoral Girdle

The skeletal structure that provides support for the upper limbs, including the clavicles and scapulae.

Clavicles

Clavicles, commonly known as collarbones, are paired bones that sit horizontally at the top of the chest, providing support and stability to the shoulders.

Scapula

A flat, triangular bone located in the upper back, which serves as an important part of the shoulder joint.

Osteoclasts

A type of bone cell that breaks down bone tissue, helping to reshape bones as they grow and repair.

Related Questions