The Diagram Below Shows Demand and Cost Curves for a Monopolistically

question 103

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 QC and charging price PL.
• B) maximize profit by producing output level QC , the minimum point of its LRAC curve
• C) lose money by producing at QL and charging price PC.
• D) maximize profit but only break even by producing at QL and charging price PL.
• E) maximize profit and make positive profit by producing at QL and charging price PL.

---

Definitions:

Evaluative Listener

A listener who focuses on the content of the message and evaluates or judges the information being presented.

Decoding Tools

Instruments or methods used to interpret or make sense of encoded information or data.

Encoding Mechanisms

Encoding mechanisms refer to the processes through which information is transformed into a format that can be stored, retrieved, or transmitted by the brain or electronic systems.

Noise

Factors that distort communication between buyer and seller, including barriers to communication.