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:

Tax Burden

The measurement of taxes that a person or business must pay, often expressed as a percentage of income or profit.

Buyer Pays

Refers to the economic principle that the buyer is responsible for paying the price of a good or service, including any taxes or fees associated with the purchase.

Tax Equally

A fiscal policy where taxes are imposed at the same rate or level for all individuals or entities, regardless of other factors.

Tax Burden

The measure of taxes that individuals, businesses, or other entities must bear, typically expressed as a percentage of income or revenue.