Refer to Figure 26.2 for a monopolistically competitive firm. At the profit-maximizing output and price, this firm is experiencing economic
A) Profits and should stay in this market in the long run.
B) Profits but could make even higher economic profits producing the next best alternative good.
C) Losses but should keep producing in the short run.
D) Losses and should shut down in the short run.

Question

Refer to Figure 26.2 for a monopolistically competitive firm. At the profit-maximizing output and price, this firm is experiencing economic
A) Profits and should stay in this market in the long run. 
B) Profits but could make even higher economic profits producing the next best alternative good. 
C) Losses but should keep producing in the short run. 
D) Losses and should shut down in the short run.

Quizplus · Accepted Answer

The Answer of  Refer to Figure 26.2 for a monopolistically competitive firm. At the profit-maximizing output and price, this firm is experiencing economic
A) Profits and should stay in this market in the long run. 
B) Profits but could make even higher economic profits producing the next best alternative good. 
C) Losses but should keep producing in the short run. 
D) Losses and should shut down in the short run.