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Figure 13-3 Figure 13-3 Shows Short-Run Cost and Demand

Question 67

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Figure 13-3 Figure 13-3 Figure 13-3 shows short-run cost and demand curves for a monopolistically competitive firm in the footwear market. -Refer to Figure 13-3.Which of the following is the area that represents the profit or loss experienced by the firm? A) A loss represented by the rectangle P<sub>2</sub>uvP<sub>1</sub>. B) A loss represented by the rectangle P<sub>2</sub>uwP<sub>0</sub>. C) A loss represented by the rectangle P<sub>1</sub>vwP<sub>0</sub>. D) An accounting profit equal to P<sub>1</sub>vwP<sub>0</sub>. Figure 13-3 shows short-run cost and demand curves for a monopolistically competitive firm in the footwear market.
-Refer to Figure 13-3.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.

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