Figure 9-A
The following diagram depicts firms in monopolistically competitive markets.
-Refer to Figure 9-A.Based on the diagram above, one can surmise that:

Question

Figure 9-A
The following diagram depicts firms in monopolistically competitive markets. 
-Refer to Figure 9-A.Based on the diagram above, one can surmise that:

Quizplus · Accepted Answer

In figure 9-A, the demand curve is tangent to the average total cost curve at the profit-maximizing quantity level, indicating that firms are making zero economic profit. This suggests that the industry is in long-run equilibrium, as there is no incentive for firms to enter or exit the market. Therefore, choices A and B are not correct. The diagram does not provide information about whether blue jeans will be produced at minimum average total cost, so choice D cannot be determined from the diagram.

Figure 9-A The Following Diagram Depicts Firms in Monopolistically Competitive Markets