Refer to the Information Provided in Figure 15

question 64

Multiple Choice

Refer to the information provided in Figure 15.5 below to answer the question(s) that follow. Figure 15.5
-Refer to Figure 15.5. Assume The Custom Sweater Shop has fixed costs of $500 and is a monopolistically competitive firm. If the firm produces the profit-maximizing level of output and sells it at the profit-maximizing price, the firm ________ of $400.

• A) suffers a loss
• B) earns a profit
• C) has total revenue
• D) has total cost