Figure 13-7 Figure 13-7 Shows Short-Run Cost and Demand

Multiple Choice

Figure 13-7 Figure 13-7 shows short-run cost and demand curves for a monopolistically competitive firm in the footwear market.
-Refer to Figure 13-7. Which of the following is the area that represents the profit or loss experienced by the firm?

A) a loss represented by the rectangle P₂uvP₁
B) a loss represented by the rectangle P₂uwP₀
C) a loss represented by the rectangle P₁vwP₀
D) an accounting profit equal to P₁vwP₀