Suppose That in the Short Run, a Monopolistically Competitive Firm

question 207

Multiple Choice

Suppose that in the short run, a monopolistically competitive firm sells its product for $35 per unit.Its average total cost at this level of output is $39.This means that:

• A)the firm makes a short-run profit of $4 per unit
• B)the firm makes a short-run loss of $4 per unit
• C)the firm makes a short-run and long-run profit of $4 per unit
• D)the firm makes a short-run and long-run loss of $4 per unit