Figure 13-8 Figure 13-8 Shows Cost and Demand Curves for a Monopolistically

Multiple Choice

Figure 13-8

Figure 13-8 shows cost and demand curves for a monopolistically competitive producer of iced tea.
-Refer to Figure 13-8.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.