Figure 98 Figure 9

Multiple Choice

Figure 9.8 Figure 9.8 shows cost and demand curves for a monopolistically competitive producer of iced tea.
-Refer to Figure 9.8.Based on the diagram,one can conclude that _______.

A) some existing firms will exit the market
B) new firms will enter the market
C) the industry is in long-run equilibrium
D) firms achieve productive efficiency