QUESTION 11 The following graphs show two firms operating in a monopolistically

Question

QUESTION 11 The following graphs show two firms operating in a monopolistically competitive market. In Graph B, a loss-minimizing firm will experience output quantity at an Figure 9.2: 2 2 Quantity Quantity Graph A Graph B o a. profit; of q2 O b.minimum loss; of 12 c. profit; between q1 and q2 o d. minimum loss; of q o e. profit, of q QUESTION 12 Which of the following is true of price d a Price discriminators profit by charging a uniform price to all customens b. Customers can easily resell a good to other if there exists price diserimination in the market for the good. Click Save and Submit to save and submit. Click Save All Answers to save all answers

Explanation / Answer

Ans:

11) Option D

minimum loss; of q1

A monopolistically competitive firm will produce at the point where marginal revenue is equal to marginal cost.In this case the firm will produce q1 units of output at a price of P1.since the average total cost is greater than price the firm will experience a minimum loss.

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