P Crest (USD/o2) P Crest (USD/oz) MC ATC MC P ATC O P (source: New Prairie Press Open Book AC MR MR q* q Ccrest (mil oz) a Crest (mil oz) SHORT RUN EQUILUBRIUM LONG RUN EQUILIBRIUM https://kstatelibraries.pressbooks.pub/economicsoffoodandag/chapter/_unknowr _-5/0. Retrieved May 7, 2021) Refer to the graph. A monopolistically competitive firm experiences economic profits. As new firms enter, the monopolistically competitive firm experiences a normal profit (break even) in the long run because O a) the firm experiences an increase in demand for its product O b) the firm experiences a decrease in demand for its product c) the average total cost curve increased domand for its product is less elastic
P Crest (USD/o2) P Crest (USD/oz) MC ATC MC P ATC O P (source: New Prairie Press Open Book AC MR MR q* q Ccrest (mil oz) a Crest (mil oz) SHORT RUN EQUILUBRIUM LONG RUN EQUILIBRIUM https://kstatelibraries.pressbooks.pub/economicsoffoodandag/chapter/_unknowr _-5/0. Retrieved May 7, 2021) Refer to the graph. A monopolistically competitive firm experiences economic profits. As new firms enter, the monopolistically competitive firm experiences a normal profit (break even) in the long run because O a) the firm experiences an increase in demand for its product O b) the firm experiences a decrease in demand for its product c) the average total cost curve increased domand for its product is less elastic
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
Answer multiple choice

Transcribed Image Text:P Crest
(USD/oz)
P Crest
(USD/oz)
MC
ATC
MC
ATC
P
(source: New Prairie Press Open Book
AC
D
MR
MR
9 q Crest (mil oz)
a Crest (mil oz)
SHORT RUN EQUILIBRIUM
LONG RUN EQUILIBRIUM
https://kstatelibraries.pressbooks.pub/economicsoffoodandag/chapter/_unknown_
-5/0. Retrieved May 7, 2021)
Refer to the graph.
A monopolistically competitive firm experiences economic profits. As new firms
enter, the monopolistically competitive firm experiences a normal profit (break
even) in the long run because
a) the firm experiences an increase in demand for its product
O b) the firm experiences a decrease in demand for its product
O c) the average total cost curve increased
d) the demand for its product is less elastic
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