Reference: Ref 15-9 (Figure: Monopolistic Competition) Refer to the Figure

Multiple Choice

Reference: Ref 15-9 (Figure: Monopolistic Competition) Refer to the figure. Suppose the figure represents a firm that operates in a monopolistic competitive market. In the long run you would expect price in this market to:

A) stay the same.
B) increase as unprofitable firms leave the industry.
C) decrease to the point that P = AC.
D) decrease to the point that P = MC.