Use the Following to Answer Questions

question 55

Multiple Choice

Use the following to answer questions :
Figure 10-3
-The imperfect competitor shown in Figure 10-3:

• A)could be in a long-run equilibrium situation for monopolistic competition, since P = AC.
• B)must be in a long-run equilibrium situation for a monopoly, since P = AC.
• C)should shut down, since profits are zero.
• D)cannot be in a long-run equilibrium situation for monopolistic competition, since P is not equal to MC.
• E)none of the above.