Figure 8.3 -Figure 8.3 Shows Demands and Costs for a Monopolistically Competitive

Figure 8.3
-Figure 8.3 shows demands and costs for a monopolistically competitive firm. When the firm's demand curve shifts from D₁ to D₂ and to D₃

A) the firm's economic profit remains the same.
B) the firm's marginal revenue at the profit maximizing output level is decreasing.
C) the firm's marginal cost at the profit maximizing output level is increasing.
D) the firm's average cost at the profit maximizing output level is decreasing.