The Figure Given Below Shows the Revenue and Cost Curves

question 65

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
-Which of the following is an example of price competition?

• A)Nike signs LeBron James to a $90 million contract for endorsements.
• B)Kellogg's puts the images of Snap, Crackle, and Pop on boxes of Cocoa Krispies, linking the cereal with Rice Krispies.
• C)McDonald's introduces new garden McSalads.
• D)Tropicana introduces the Blue Raspberry Rush juice.
• E)Apple offers a 20% discount on its new range of iPhones.

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Definitions:

Quarterly

Pertaining to or occurring every three months.

Gross Earnings

The total income earned by an individual or organization before any deductions or taxes are subtracted.

Total Deductions

The sum of all amounts subtracted from an individual's gross income for taxes, benefits, and other expenses.

Net Earnings

The amount of income left after deducting taxes, benefits, and other expenses from gross earnings; often referred to as take-home pay.