Exhibit 10.1 -Exhibit 10.1 Shows the Demand,marginal Revenue,and Cost Curves for a Cost

Multiple Choice

Exhibit 10.1

-Exhibit 10.1 shows the demand,marginal revenue,and cost curves for a monopolistic competitor.The monopolistic competitor is in _____

A) long-run equilibrium because price equals average total cost.
B) long-run equilibrium because marginal cost equals marginal revenue.
C) long-run equilibrium because price exceeds marginal cost.
D) short-run equilibrium because it is earning a positive economic profit.
E) short-run equilibrium because price equals average total cost.