Which of the Following Statements About a Monopolistically Competitive Firm

Multiple Choice

Which of the following statements about a monopolistically competitive firm in the short run is true?

A) Profits will be maximized at the point at which price equals marginal cost and hence there is no deadweight loss.
B) The firm may be able to earn a super normal profit in the short run and the long run.
C) Entry into the market is difficult.
D) Advertising may enable a firm to charge a higher price than that charged by rival firms.
E) It faces a perfectly elastic demand curve