-The Above Figure Shows a Motel Engaged in Monopolistic Competition

question 71

Multiple Choice

-The above figure shows a motel engaged in monopolistic competition with other motels. The figure above shows the ________ equilibrium in which the motel is ________.

• A) short-run; making an economic profit
• B) long-run; making zero economic profit
• C) short-run; incurring an economic loss
• D) long-run; making an economic profit
• E) short-run; making zero economic profit