The Figure Given Below Shows the Demand Curves of Two

question 8

Multiple Choice

The figure given below shows the demand curves of two classes of buyers, for tickets to a football match.Figure 11.4
D₁: Demand curve of group 1
D₂: Demand curve of group 2
MR₁: Marginal revenue of group 1
MR₂: Marginal revenue of group 2
MC: Marginal cost
-The perfectly competitive market structure results in economic efficiency because:

• A)price is equal to marginal revenue in the short run.
• B)firms are producing at the minimum point of the average-total-cost curve in the short run.
• C)a normal profit is being earned in the long run.
• D)a normal profit is being earned in the short run.
• E)in the long-run, price is equal to marginal cost and minimum average-total-cost.

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Definitions:

American Colonies

Refers to the thirteen British colonies in North America that declared independence in 1776, leading to the American Revolutionary War and the formation of the United States.

Spain

A country located on the Iberian Peninsula in Europe, known for its rich history, cultural diversity, and significant contributions to art, literature, and global exploration.

Puerto Rico

A Caribbean island and unincorporated U.S. territory with a rich cultural history and diverse heritage.

John Quincy Adams

John Quincy Adams was the 6th President of the United States (1825-1829) known for his strong stance on foreign policy issues, support for the abolition of slavery, and as a formidable diplomat.