Figure 13-7 Shows Short-Run Cost and Demand Curves for a Monopolistically

question 194

Multiple Choice

Figure 13-7 shows short-run cost and demand curves for a monopolistically competitive firm in the footwear market.
-Refer to Figure 13-7.Which of the following is the area that represents the profit or loss experienced by the firm?

• A)a loss represented by the rectangle P2uvP1
• B)a loss represented by the rectangle P2uwP0
• C)a loss represented by the rectangle P1vwP0
• D)an accounting profit equal to P1vwP0

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