Microeconomics 6th Edition by Robert Hall, Shirley Kuiper, Marc Lieberman

Exercise 12

Draw a diagram,including demand,marginal revenue,marginal cost,and any other curves necessary,to illustrate each of the following two situations for a monopolistic competitor:
a. The firm is suffering a loss,and it should shut down in the short run.
b. The firm is suffering a loss,but it should stay open in the short run.