Table 16-5 This Table Shows the Demand Schedule, Marginal Cost, and Average

Multiple Choice

Table 16-5
This table shows the demand schedule, marginal cost, and average total cost for a monopolistically competitive firm.
-Refer to Table 16-5. Which of the following statements regarding this monopolistically competitive firm is correct?

A) New firms will enter this market in the long run since firm profits are greater than zero.
B) Firms will leave this market in the long run since firm profits are less than zero.
C) This firm is currently in long-run equilibrium.
D) This firm is currently in long-run equilibrium, and the firm is producing its efficient scale of output.