The Following Figures Show the Demand and Cost Curves of a Perfectly

question 104

Multiple Choice

The following figures show the demand and cost curves of a perfectly competitive and a monopoly firm respectively. Figure 24.7 D: Average Revenue
AC: Average cost
MC: Marginal cost
MR: Marginal cost
Calculate the deadweight loss in Figure 24.6, if the perfectly competitive industry is monopolized after it had been producing an output of 10, 000 units?

• A)The area P₂ACP₁
• B)The area ABC
• C)The area P₂ABP₁
• D)The distance AB
• E)There is no deadweight loss

---

Definitions:

Transactions

The actions or activities conducted by individuals or entities involving the exchange of goods, services, or financial assets.

Account

is a record within an accounting system that tracks the financial transactions of a specific asset, liability, equity, revenue, or expense.

Tabular Form

A method of presenting data in tables consisting of rows and columns, which helps in systematic organization and easy analysis of information.

Journals And Ledgers

Record-keeping books where financial transactions are first noted (journals) and then summarized and classified (ledgers).