Refer to Figure 13-4. Should the firm represented in the diagram ...

[Arii_bell]

Refer to Figure 13-4. Should the firm represented in the diagram continue to stay in business despite its losses?
 
  A) No, it is not able to cover its fixed cost.
  B) Yes, it should increase its revenue by raising its price.
  C) Yes, its total revenue covers its variable cost.
  D) No, it should shut down.

Question 2

The market demand curve facing a monopolist is more elastic than the market demand curve facing a monopolistic competitor.
 
  Indicate whether the statement is true or false

[Edwyer]

Answer to Question 1

C

Answer to Question 2

FALSE