The Figures Given Below Represent the Revenue Curves of a Monopolist

question 64

Multiple Choice

The figures given below represent the revenue curves of a monopolist. Figure 10.2 TR: Total revenue curve
AR: Average revenue curve
MR: Marginal revenue curve
According to Figure 10.2, at point C:

• A)price elasticity of demand is equal to infinity.
• B)price elasticity of supply is equal to 1.
• C)price elasticity of supply is equal to 0.
• D)price elasticity of demand is equal to 0.
• E)price elasticity of demand is equal to 1.

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Definitions:

Net Profit

The financial gain achieved after subtracting all expenses, taxes, and costs from total revenue.

Net Income

The total earnings of a company after subtracting all expenses, taxes, and costs, indicating the company's profitability.

Depreciation

The accounting process of allocating the cost of tangible assets over their useful lives, reflecting wear and tear or obsolescence.

Inventory

A company's merchandise, raw materials, and finished and unfinished products which have not yet been sold.