Figure 8.3 -Figure 8.3 Shows Demands and Costs for a Monopolistically Competitive

Figure 8.3
-Figure 8.3 shows demands and costs for a monopolistically competitive firm. When the firmʹs demand curve shifts from D1 to D2 and to D3,

A) the firmʹs economic profit remains the same.
B) the firmʹs marginal revenue at the profit maximizing output level is decreasing.
C) the firmʹs marginal cost at the profit maximizing output level is increasing.
D) the firmʹs average cost at the profit maximizing output level is decreasing.