The Figure Below Shows the Revenue and Cost Curves of a Monopolistically

question 19

Multiple Choice

The figure below shows the revenue and cost curves of a monopolistically competitive firm.Figure: 12.2
In the figure,
D: Demand curve
MR: Marginal revenue curve
ATC₁ and ATC₂: Average total cost curves
MC: Marginal cost curve
-In the long-run, in a monopolistically competitive market:

• A)marginal revenue is greater than average revenue.
• B)price equals marginal cost.
• C)price equals minimum average total cost.
• D)the firms earn positive economic profits.
• E)resources are inefficiently allocated .

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