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The Diagram Below Shows Demand and Cost Curves for a Monopolistically

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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)  PL = LRAC with zero profits B)  PL = MC with zero profits C)  QL is less than QC D)  LRAC at QL 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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