Figure 13-7 Figure 13-7 Shows Short-Run Cost and Demand Curves for a 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.