Refer to Figure 26.4 for a monopolistically competitive firm. If the firm currently faces Demand₂ and MR₂, then it will earn A) A positive economic profit, and firms will enter the industry. B) A positive economic profit, and firms will exit the industry. C) A negative economic profit, and firms will exit the industry. D) Zero economic profit, and neither entry nor exit will occur.

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The Answer of Refer to Figure 26.4 for a monopolistically competitive firm. If the firm currently faces Demand₂ and MR₂, then it will earn A) A positive economic profit, and firms will enter the industry. B) A positive economic profit, and firms will exit the industry. C) A negative economic profit, and firms will exit the industry. D) Zero economic profit, and neither entry nor exit will occur.