Exhibit 10.5 -Exhibit 10.5 Shows the Demand,marginal Revenue,and Cost Curves for a Cost

Exhibit 10.5

-Exhibit 10.5 shows the demand,marginal revenue,and cost curves for a monopolistically competitive firm.At the profit-maximizing (or loss-minimizing) output and price,the firm would _____

A) be earning zero economic profit.
B) be earning an economic profit.
C) be experiencing an economic loss.
D) be better off shutting down, since total revenue does not cover fixed costs.
E) have to expand to stay in business in the long run.