Table 16-4 This Table Shows the Demand Schedule, Marginal Cost, and Average

Table 16-4
This table shows the demand schedule, marginal cost, and average total cost for a monopolistically competitive firm.

-Refer to Table 16-4.Which of the following is likely to happen in the long run in this market?

A) The market is currently in a long-run equilibrium.
B) The market price is likely to fall.
C) Firms are likely to enter the market since firms are earning a positive economic profit.
D) Firms are likely to leave the market since firms are earning a negative economic profit.

Correct Answer:

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