Refer to the information provided in Figure 15.4 below to answer the question(s) that follow. Figure 15.4
-Refer to Figure 15.4. Assume The Hand Made Shirt Shop has fixed costs of $150 and is a monopolistically competitive firm. If the firm produces 50 personalized sweatshirts in the short run, it will

Question

Refer to the information provided in Figure 15.4 below to answer the question(s) that follow.  Figure 15.4
-Refer to Figure 15.4. Assume The Hand Made Shirt Shop has fixed costs of $150 and is a monopolistically competitive firm. If the firm produces 50 personalized sweatshirts in the short run, it will

Quizplus · Accepted Answer

In a monopolistically competitive market, firms may not always earn a profit. Producing 50 personalized sweatshirts and not being able to cover the total costs (fixed plus variable) but still covering more than the fixed costs means the firm minimizes losses rather than making a profit, breaking even, or not covering any costs at all.

Refer to the Information Provided in Figure 15