In this video, Hamida may have made a mistake in identifying the profit/loss area. Identify whetheror not she's made a mistake. If she hasn't, mark it as right. If she has, then identify the rightprofit/loss area. The graph is attached here again for your convenienceCosts andrevenue$P2P₁Pol0WQyMRMCATCAVCDemandQuantityHamida did not make a mistake.There is a loss of (P1-P2)Qy for this monopolistically competitive firmThere is a positive profit of (P1-P2)Qy for this monopolistically competitive firmO There is a loss of (P2-PO)Qy for this monopolistically competitive firm

In a monopolistically competitive firm, the firm would earn profit If it is setting price as a…

Hamida did not make a mistake. O There is a loss of (P1-P2)Qy for this monopolistically competitive firm O There is a positive profit of (P1-P2)Qy for this monopolistically competitive firm O There is a loss of (P2-PO)Qy for this monopolistically competitive firm

Hamida did not make a mistake. O There is a loss of (P1-P2)Qy for this monopolistically competitive firm O There is a positive profit of (P1-P2)Qy for this monopolistically competitive firm O There is a loss of (P2-PO)Qy for this monopolistically competitive firm

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

In this video, Hamida may have made a mistake in identifying the profit/loss area. Identify whether
or not she's made a mistake. If she hasn't, mark it as right. If she has, then identify the right
profit/loss area. The graph is attached here again for your convenience
Costs and
revenue
$
P2
P₁
Pol
0
W
Qy
MR
MC
ATC
AVC
Demand
Quantity
Hamida did not make a mistake.
There is a loss of (P1-P2)Qy for this monopolistically competitive firm
There is a positive profit of (P1-P2)Qy for this monopolistically competitive firm
O There is a loss of (P2-PO)Qy for this monopolistically competitive firm

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