Costume Jewelry Is Produced in a Monopolistically Competitive Market

Multiple Choice

Costume jewelry is produced in a monopolistically competitive market. One producer produces 700 necklaces and at that output level, MR = MC = $3. We know then that

A) the price is $3
B) economic profit is $2,100
C) the price is higher than $3
D) new firms will enter the market
E) the firms should produce the 700 necklaces in the short run, but shut down in the long run