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The Diagram Below Shows Demand and Cost Curves for a Monopolistically

question 53

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The diagram below shows demand and cost curves for a monopolistically competitive firm.
The diagram below shows demand and cost curves for a monopolistically competitive firm.    FIGURE 11- 3 -Refer to Figure 11- 3.Which of the following is a demonstration of the excess- capacity theorem? A) P1 = LRAC with zero profits B) P1 = MC with zero profits C) Q1 is less than Q2 D) LRAC at Q1 is not at its minimum. E) Both C and D demonstrate the excess- capacity theorem. FIGURE 11- 3
-Refer to Figure 11- 3.Which of the following is a demonstration of the excess- capacity theorem?


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