The diagram below shows selected cost and revenue curves for a firm in a monopolistically competitive industry. 
FIGURE 11-1
-Refer to Figure 11-1.If this firm is maximizing its profits,does the diagram depict a long-run equilibrium situation?
A) Yes,because this firm is producing where MC = MR and is earning zero profits.
B) Yes,because this firm is producing where MC = MR and is earning economic profits.
C) No,because this firm is earning profits which will attract new firms to this market.
D) No,because this firm is suffering losses and firms will exit this market.
E) No,because this firm is a natural monopoly.
Correct Answer:
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