1. Use the diagram below to answer questions from 42 to 47:
3. Figure above short-run cost and demand curves for a monopolistically competitive firm in the market for designer watches.
5. Attached pdffile to download, if needed
6. Image4_FinalExam_Micro.pdf
7. Q42:If the firm represented in the diagram is currently producing and sellingQaunits, what is the price charged?
9. A.Po
10. B.P1
11. C.P2
12. D.P3

1 points

QUESTION 43

1. What is the area that represents the total revenue made by the firm?
2. A.0P0a Qa
3. B.0P1b Qa
4. C.0P2c Qa
5. D.0P3d Qa

1 points

QUESTION 44

1. What is the area that represents the total variable cost of production?
2. A.0P0a Qa
3. B.0P1b Qa
4. C.P0a b P1
5. D.P1b d P3

1 points

QUESTION 45

1. What is the area that represents the total fixed cost of production?Hint: Per unit fixed cost is ATC-AVC at any level of output
3. A.0P1a Qa
4. B.P0a d P3
5. C.P1b d P3
6. D.That information cannot be determined from the graph.

1 points

QUESTION 46

1. What is the area that represents the loss made by the firm?
2. A.the areaP0a d P3
3. B.the areaP1b c P2
4. C.the areaP0a c P2
5. D.the areaP2c d P3

1 points

QUESTION 47

1. Should the firm represented in the diagram continue to stay in business despite its losses?
2. A.No, it should shut down
3. B.Yes, its total revenue covers its variable cost.
4. C.No, it is not able to cover its fixed cost
5. D.Yes, it should increase its revenue by raising its price.