The Diagram Below Shows Demand and Cost Curves for a Monopolistically

Multiple Choice

The diagram below shows demand and cost curves for a monopolistically competitive firm.
FIGURE 11-3
-Refer to Figure 11-3.In the long run,a monopolistically competitive firm will

A) make profit by producing at Q2 and charging price P1.
B) lose money by producing at Q1 and charging price P2.
C) maximize profit and make positive profit by producing at Q1 and charging price P1.
D) maximize profit but only break even by producing at Q1 and charging price P1.
E) maximize profit by producing output level Q2,the minimum point of its LRAC curve.