Solved

The Figure Given Below Shows the Revenue and Cost Curves

Question 58

Multiple Choice

The figure given below shows the revenue and cost curves of a monopolistically competitive firm.Figure 12.4
The figure given below shows the revenue and cost curves of a monopolistically competitive firm.Figure 12.4    MR: Marginal revenue curve ATC: Average total cost curve MC: Marginal cost curve -If all firms in a monopolistically competitive market are incurring losses, then eventually: A) the demand for the products in the market will increase. B) the supply of the products in the market will increase. C) the price of the products in general will decline. D) the cost of production will increase. E) the firms will exit until the existing ones just break even. MR: Marginal revenue curve
ATC: Average total cost curve
MC: Marginal cost curve
-If all firms in a monopolistically competitive market are incurring losses, then eventually:


A) the demand for the products in the market will increase.
B) the supply of the products in the market will increase.
C) the price of the products in general will decline.
D) the cost of production will increase.
E) the firms will exit until the existing ones just break even.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions