Refer to the Following Graph to Answer the Following Questions

question 77

Multiple Choice

Refer to the following graph to answer the following questions:

-The short-run equilibrium for a monopolistically competitive firm is at price equals $29,average total cost equals $22,and marginal cost equals marginal revenue equals $18.Which of the following is true?

• A) Per-unit profit is $11.
• B) More firms will be attracted into the industry.
• C) The firm could increase the price and increase profits.
• D) The firm could decrease the price and increase profits.
• E) The firm is operating in the upward-sloping portion of average total cost (AT

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Definitions:

Net Income

The total profit of a company after all expenses, including taxes and operating costs, have been deducted from total revenue.

Profit Margin Ratio

A financial metric that measures the percentage of revenue that exceeds the cost of goods sold, indicating the profitability of sales.

Net Income

The total earnings of a company after deducting all expenses, taxes, and losses, indicating the company's profitability.

Net Sales

The revenue from sales after deducting returns, allowances for damaged or missing goods, and discounts.