Use the Figure Below to Answer the Following Questions

question 131

Multiple Choice

Use the figure below to answer the following questions. Figure 13.2.3
-Refer to Figure 13.2.3.Assume this firm faces demand curve D₂.If this firm in monopolistic competition is maximizing economic profit,

• A)there will be entry of rival firms into the industry.
• B)rival firms will exit the industry.
• C)it is producing the efficient quantity.
• D)the number of firms in the industry will remain constant.
• E)economic profit will fall over time.