Table 16-4 Beatrice's Birthday Cakes Operates in a Monopolistically Competitive Market, So

question 97

Multiple Choice

Table 16-4
Beatrice's Birthday Cakes operates in a monopolistically competitive market, so it is one bakery among many in the market for birthday cakes. The following table presents cost and revenue data for birthday cakes at Beatrice's.
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-Refer to Table 16-4. Given the cost and revenue data, Beatrice's is

• A)not in a long-run equilibrium.More businesses will enter the bakery market in the long-run.
• B)not in a short-run equilibrium.
• C)not in a long-run equilibrium.Some businesses currently in the bakery market will exit the market in the long-run.
• D)in a long-run equilibrium.

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