Exhibit 10-3 at the Profit-Maximizing Output, the Monopolistically Competitive

Multiple Choice

Exhibit 10-3 At the profit-maximizing output, the monopolistically competitive firm in Exhibit 10-3 is in

A) long-run equilibrium because price equals average total cost
B) long-run equilibrium because price is less than average total cost
C) short-run equilibrium because price is greater than average total cost
D) short-run equilibrium because there is an economic loss
E) short-run equilibrium because there is zero economic profit