Refer to figure 13 4 what is the area that represents

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12) Refer to Figure 13 - 4. What is the area that represents the loss made by the firm? 12) A) the area P 0 acP 2 B) the area P 0 adP 3 C) the area P 1 bcP 2 D) the area P 2 cdP 3
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13) Refer to Figure 13 - 4. Should the firm represented in the diagram continue to stay in business despite its losses? 13)
Table 13 - 3 Quantity Price (dollars) Total Revenue (dollars) Total Variable Cost (dollars) Total Cost (dollars) 0 $21 $0 $0 $50 1 20 20 16 66 2 19 38 31 81 3 18 54 45 95 4 17 68 59 109 5 16 80 75 125 6 15 90 93 143 7 14 98 112 162 8 13 104 140 190 9 12 108 180 230 10 11 110 230 280 Table 13 - 3 shows the demand and cost schedules for a monopolistically competitive firm. 14) Refer to Table 13 - 3. What are the profit - maximizing/loss - minimizing output level and price? 14) $18 = $16
15) Refer to Table 13 - 3. What is the amount of the firm's loss at its optimal output level? 15)
16) Refer to Table 13 - 3. What is its average variable cost of production at its optimal output level? 16) A) $0 (because its optimal output = 0) B) $15 C) $14.75 D) $29
17) Refer to Table 13 - 3. What is the best course of action for the firm in the short run? 17)

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