If the Short-Run Equilibrium Position for a Monopolistically Competitive Firm

Multiple Choice

If the short-run equilibrium position for a monopolistically competitive firm is P = $28.47, ATC = $22.13, and MC = MR = $17.47, which of the following statementsis true?

A) The firm's economic profit is $11.
B) Additional firms will be attracted into the industry.
C) The firm could raise price and increase profit.
D) The firm could lower price and increase profit.
E) The firm is producing on the upward-sloping segment of its ATC curve.