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Figure 16-1

Question 213

Multiple Choice

Figure 16-1. The figure is drawn for a monopolistically competitive firm.
Figure 16-1. The figure is drawn for a monopolistically competitive firm. -Refer to Figure 16-1.If the ATC=20 at the profit-maximizing level of output,which of the following will occur in the long run in this industry? A) Firms will exit this industry. B) Firms will enter this industry. C) This firm will continue to earn positive economic profits. D) This firm will incur losses.
-Refer to Figure 16-1.If the ATC=20 at the profit-maximizing level of output,which of the following will occur in the long run in this industry?


A) Firms will exit this industry.
B) Firms will enter this industry.
C) This firm will continue to earn positive economic profits.
D) This firm will incur losses.

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