These are the cost and revenue curves associated with a firm.
Assuming the firm in the graph shown is producing Q1 and charging P3,it is likely showing the cost and revenue curves of a monopolistically competitive firm that is:

Question

These are the cost and revenue curves associated with a firm. 
Assuming the firm in the graph shown is producing Q1 and charging P3,it is likely showing the cost and revenue curves of a monopolistically competitive firm that is:

Quizplus · Accepted Answer

If the firm is producing at Q1 and charging P3, it is likely that it is maximizing its profits since this is the output level where marginal revenue (MR) equals marginal cost (MC), which is the condition for profit maximization. On the graph, this occurs where the MR and MC curves intersect. Additionally, since the firm is not earning zero profits (i.e. it is charging a price above its average total cost), it is not in perfect competition. Rather, since it is able to charge a price above its marginal cost, it indicates that it has some degree of market power. Therefore, the firm is likely showing the cost and revenue curves of a monopolistically competitive firm. Finally, in the long-run, monopolistically competitive firms earn zero economic profits due to entry and exit of firms, so the answer is D - all of these statements are true.

These Are the Cost and Revenue Curves Associated with a Firm