The Diagram Below Shows Demand and Cost Curves for a Monopolistically

question 12

Multiple Choice

The diagram below shows demand and cost curves for a monopolistically competitive firm.
FIGURE 11-3
-Refer to Figure 11-3.In the long run,a monopolistically competitive firm will

• A)make profit by producing at Q2 and charging price P1.
• B)lose money by producing at Q1 and charging price P2.
• C)maximize profit and make positive profit by producing at Q1 and charging price P1.
• D)maximize profit but only break even by producing at Q1 and charging price P1.
• E)maximize profit by producing output level Q2,the minimum point of its LRAC curve.

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Definitions:

Works In The Home

Activities or jobs carried out within a residential setting, often related to domestic maintenance or care.

Without Pay

A condition or situation where work is performed voluntarily or under obligation without the exchange of financial compensation.

Domestic Work

Labor performed within the home, including tasks such as cleaning, cooking, child care, and maintenance, often for hire.

Traditional Nuclear Family

A family unit consisting of two parents (traditionally a male and female) and their biological children, living together and functioning as a single household.