The Figure Given Below Shows the Revenue and Cost Curves

question 14

Multiple Choice

The figure given below shows the revenue and cost curves of a perfectly competitive firm. Figure 9.5 MC: Marginal cost curve
MR: Marginal revenue curve.
ATC: Average-total-cost curve
AVC: Average-variable-cost curve
According to Figure 9.5, 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.