Figure 12.1.1
-A monopolistically competitive firm in short-run equilibrium:
A) will make negative profit (lose money).
B) will make zero profit (break-even).
C) will make positive profit.
D) Any of the above are possible.

Question

Figure 12.1.1
-A monopolistically competitive firm in short-run equilibrium:
A) will make negative profit (lose money). 
B) will make zero profit (break-even). 
C) will make positive profit. 
D) Any of the above are possible.

Quizplus · Accepted Answer

A monopolistically competitive firm in short-run equilibrium can make negative profit, zero profit, or positive profit depending on the specific market conditions and level of competition. Therefore, any of the options listed are possible.

Figure 12.1.1 -A Monopolistically Competitive Firm in Short-Run Equilibrium