In the Short Run, a Monopolistically Competitive Firm

Multiple Choice

In the short run, a monopolistically competitive firm

A) will go out of business if it is incurring an economic loss.
B) always earns a positive economic profit.
C) may earn a positive, negative, or zero economic profit.
D) never incurs an economic loss.
E) will maximize profit by producing output such that price equals rising marginal cost.