The Figure Given Below Shows the Revenue and Cost Curves

question 116

Multiple Choice

The figure given below shows the revenue and cost curves of a perfectly competitive firm. Figure 23.5 MC: Marginal cost curve
MR: Marginal revenue curve.
ATC: Average-total-cost curve
AVC: Average-variable-cost curve
According to Figure 23.5, the firm has:

• A)profits equal to the area AP₁EF.
• B)profits equal to the area P₁BDE.
• C)losses equal to the area 0AFQ₁.
• D)losses equal to the area P₁BDE.
• E)no profit no loss.

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Definitions:

Conviction Stage

A phase in the buying process where potential customers develop a firm belief in the value and benefits of a product, making them more likely to purchase.

Sales Presentation

A formal pitch or demonstration given to potential buyers with the aim of securing a sale.

Trial Close

A technique used in sales to ask a prospective customer a question that assumes the sale is going to be made, in order to gauge their readiness to purchase.