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-The Above Figure Shows a Monopolistically Competitive Firm

Question 203

Multiple Choice

  -The above figure shows a monopolistically competitive firm. The figure A)  is only a short-run illustration because the firm is making an economic profit. B)  could be either a short-run or long-run illustration because monopolistically competitive firms can make an economic profit in the long-run. C)  is only a long-run illustration because the firm is making zero economic profit. D)  is neither a short- nor a long-run illustration.
-The above figure shows a monopolistically competitive firm. The figure


A) is only a short-run illustration because the firm is making an economic profit.
B) could be either a short-run or long-run illustration because monopolistically competitive firms can make an economic profit in the long-run.
C) is only a long-run illustration because the firm is making zero economic profit.
D) is neither a short- nor a long-run illustration.

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