The Figure Given Below Shows the Revenue and Cost Curves

Multiple Choice

The figure given below shows the revenue and cost curves of a monopolistically competitive firm.Figure 12.4
MR: Marginal revenue curve
ATC: Average total cost curve
MC: Marginal cost curve
-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 firms earn zero economic profit in the short run.
C) The firms achieve allocative and productive efficiency in the short run.
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.