ECON-1010-A-Introduction to Microeconomics Course Materials & Test Answers | moodle.uleth.ca

A graph plots price and cost (dollars per unit) versus Quantity (units per week).The graph points plotted on the x-axis are 100, 140, 200, 220, and 250. The vertical axis ranges from 0 to 100 with an increment of 10 units. The graph plots two convex curves, four falling curves, and six closed points (100, 70), (140, 55), (200, 80), (200, 100), (220, 90), and (250, 85). The first curve falls through (10, 35) to (40, 30) then rises through (100, 40) to (250, 100) is labeled M C, and the second curve falls through (95, 50) to (150, 55) then rises through (200, 65) to (250, 85) is labeled A T C. The first curve falls through (30, 78) to (160, 25) is labeled M R sub 2. The second curve that falls through (50, 95) to (190, 40) is labeled D sub 2. The third curve that falls through (150, 100) to (250, 70) is labeled M R sub 1. The fourth curve falls through (200, 100) to (250, 85) is labeled D sub 1.

Figure 13.2.5

Refer to Figure 13.2.5, which shows a firm in monopolistic competition. The curve D1 shows the demand for the firm's output. When the firm maximizes profit, what is the profit it makes or the loss it incurs in the short run?

The firm makes a positive economic profit.

The firm makes zero economic profit.

The firm incurs an economic loss.

❌

The firm makes an economic profit that is impossible to determine without information concerning the price charged by the other firms in the market.

The firm makes less economic profit than that it would if the market were perfectly competitive.

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ECON-1010-A-Introduction to Microeconomics

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