Table 103 Table 10

Multiple Choice

Table 10.3 Table 10.3 shows the demand and cost schedules for a monopolistically competitive firm.
-Refer to Table 10.3.What is the best course of action for the firm in the short run?

A) It should shut down.
B) It should stay in business because it covers some of its fixed cost.
C) It should increase its sales by lowering its price.
D) It should not cut its price, but it should increase its sales by advertising.