Use the following to answer question:
Figure 11.6
-(Figure 11.6) The graph depicts a monopolistically competitive firm. The firm's current economic profit is _____, and its long-run economic profit is _____.

Question

Use the following to answer question:
Figure 11.6 
-(Figure 11.6) The graph depicts a monopolistically competitive firm. The firm's current economic profit is _____, and its long-run economic profit is _____.

Quizplus · Accepted Answer

The firm is currently making an economic profit of $6,000, as indicated by the vertical distance between the average total cost curve and the demand curve at the current output level. In the long run, however, new firms will enter the market, attracted by the firm's economic profit, and the demand curve will shift to the left until the firm is making zero economic profit.

Use the Following to Answer Question