In the Short Run,a Monopolistically Competitive Firm

question 84

Multiple Choice

In the short run,a monopolistically competitive firm

• A)May make economic profits,but it fails to make economic profits in the long run because of the entry of new firms.
• B)May make profits just as it does in the long run because firms can enter easily.
• C)Produces at a rate at which long-run average cost equals price,but not at which long-run marginal cost equals marginal revenue.
• D)Makes profits just as it does in the long run because entry is blocked.