Refer to Figure 14.2.2.This firm
A)is incurring an economic loss.
B)is in long-run equilibrium.
C)is making an economic profit.
D)must raise its price to maximize economic profit.
E)will make more economic profit in the long run.
Refer to Figure 14.2.2.If this firm in monopolistic competition is maximizing economic profit,
A)there will be entry of rival firms into the industry.
B)rival firms will exit the industry.
C)its profit will rise over time.
D)this firm will exit the industry in the long run.
E)it is in long-run equilibrium.
Refer to Figure 14.2.3.Which demand curve does this monopolistically competitive firm face in the long run?
A)demand curve D₁
B)demand curve D₂
C)either demand curve D₁ or D₂
D)neither demand curve D₁ nor demand curve D₂
E)Any demand curve is possible, including D₁ or D₂.
Refer to Figure 14.2.3.Assume this firm faces demand curve D₁.To maximize economic profit, this firm in monopolistic competition will charge a price of ________ and produce an output of ________ units.