A Picture Frame Company Operates in a Monopolistically Competitive Market

Multiple Choice

A picture frame company operates in a monopolistically competitive market. Its short-run equilibrium price is $80 and its ATC is $65. It sells 100 picture frames a week. From this we can tell:

A) this firm is making a normal profit.
B) other picture frame companies will want to exit the market.
C) there are no other picture frame companies in the area.
D) economic profits are $1,500.
E) total profits are being maximized.