The Figure Given Below Shows the Revenue and Cost Curves

question 85

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
-One major similarity between perfect competition and monopolistic competition is that:

• A)the firms earn above normal profits in the long run.
• B)the firms are price makers.
• C)the firms produce identical products.
• D)the firms just break even in the long run.
• E)entry of firms is barred in the long run.

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Definitions:

Diminishing Returns

The property whereby the benefit from an extra unit of an input declines as the quantity of the input increases.

Economic Growth Rates

The rate at which a nation's Gross Domestic product (GDP) grows or declines.

Economic Growth Rates

Measures the rate of growth in a country's economy over a specific period, often expressed as a percentage increase in real GDP.

Future Innovations

Anticipated advancements and new technologies that are expected to occur in the future.