Consider the following graph
Identify:
(a) Which panel(s) could represent a firm in monopolistic competition in the long run;
(b) Which panel(s) could not represent a firm in monopolistic competition in the short run;
(c) Which panel(s) could represent a firm in monopolistic competition making a loss;
(d) Which panel(s) could represent a firm in monopolistic competition making a positive economic profit

Question

Consider the following graph
  Identify:
(a) Which panel(s) could represent a firm in monopolistic competition in the long run;
(b) Which panel(s) could not represent a firm in monopolistic competition in the short run;
(c) Which panel(s) could represent a firm in monopolistic competition making a loss;
(d) Which panel(s) could represent a firm in monopolistic competition making a positive economic profit

Quizplus · Accepted Answer

The Answer of Consider the following graph
  Identify:
(a) Which panel(s) could represent a firm in monopolistic competition in the long run;
(b) Which panel(s) could not represent a firm in monopolistic competition in the short run;
(c) Which panel(s) could represent a firm in monopolistic competition making a loss;
(d) Which panel(s) could represent a firm in monopolistic competition making a positive economic profit

Consider the Following Graph