The Figure Given Below Shows the Cost and Revenue Curves

question 28

Multiple Choice

The figure given below shows the cost and revenue curves of a monopolist.Figure 11.9
D: Average revenue
MR: Marginal revenue
ATC: Average total cost
MC: Marginal cost
-In long-run equilibrium, the monopolistically competitive firm:

• A)will break even.
• B)will cease to advertise.
• C)will earn a positive economic profit.
• D)will face a perfectly elastic demand curve.
• E)will no longer need to engage in non-price competition.

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Definitions:

Acceptance

The act of agreeing to the terms of an offer, thereby forming a contract.

Legally Enforceable Contract

An agreement between parties that is recognized by law and can be enforced in court if not fulfilled.

Breached

Violation or breaking of a law, duty, or agreement.

Consideration

In contract law, consideration refers to something of value that is exchanged between parties as part of an agreement.