Question 1
The diagram below shows selected cost and revenue curves for a firm in a monopolistically competitive industry.

FIGURE 11-2
Refer to Figure 11-2. At the profit-maximizing level of output, the firm makes an economic profit or loss of
◦ $4500.
◦ $6000.
◦ $12 000.
◦ $11 250.
◦ $9000.
Question 2

FIGURE 11-3
Refer to Figure 11-3. A perfectly competitive firm with zero economic profits is depicted in diagram
◦ 1.
◦ 2.
◦ 3.
◦ 4.
◦ 2 or 4.