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:
A) making positive economic profits.
B) earning negative economic profits.
C) in long-run equilibrium.
D) All of these statements are true.

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:
A) making positive economic profits. 
B) earning negative economic profits. 
C) in long-run equilibrium. 
D) All of these statements are true.

Quizplus · Accepted Answer

The Answer of 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:
A) making positive economic profits. 
B) earning negative economic profits. 
C) in long-run equilibrium. 
D) All of these statements are true.

These Are the Cost and Revenue Curves Associated with a Firm