Which will be TRUE for a monopolistic competitor experiencing short-run losses?

Question

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A monopolistic competitor experiencing short-run losses will have a situation where P (price) is less than ATC (average total cost). This means that the cost of producing each unit of output is greater than the price that can be charged in the market, resulting in losses. Option A and B are incorrect because they indicate that the firm is making a profit or breaking even, which is not the case for a firm experiencing short-run losses. Option D is also incorrect because it refers to the relationship between price and MC (marginal cost), which is not relevant in determining short-run losses.

Which Will Be TRUE for a Monopolistic Competitor Experiencing Short-Run