The Figure Given Below Shows the Revenue and Cost Curves

Multiple Choice

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
-Consumers are willing to pay a higher price for a product with a brand name as opposed to a generic product because:

A) a brand name provides a signal about a product's quality and reliability.
B) they are willing to pay more for the privilege of watching the firm's commercials.
C) a product with a brand name is always of higher quality.
D) consumers maximize utility by purchasing the most expensive products.
E) consumers are irrational.