This figure depicts a situation in a monopolistically competitive market. MC ATC PRICE 100 8 882 889 229 90 80 70 60 50 Demand MR 10 20 30 40 50 60 70 80 90 100 QUANTITY Which of the following will occur in the long-run in this industry? Firms will exit this industry. This firm will incur losses. This firm will continue to earn positive economic profits. Firms will enter this industry. 40 10 30 20 身

Exploring Economics
8th Edition
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:Robert L. Sexton
Chapter14: Monopolistic Competition And Product Differentiation
Section: Chapter Questions
Problem 10P
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This figure depicts a situation in a monopolistically competitive market.
MC
ATC
PRICE
100
8 882 889 229
90
80
70
Demand
MR
10 20 30 40 50 60 70 80 90 100
QUANTITY
Which of the following will occur in the long-run in this industry?
Firms will exit this industry.
This firm will incur losses.
This firm will continue to earn positive economic profits.
Firms will enter this industry.
40
10
30
20
Transcribed Image Text:This figure depicts a situation in a monopolistically competitive market. MC ATC PRICE 100 8 882 889 229 90 80 70 Demand MR 10 20 30 40 50 60 70 80 90 100 QUANTITY Which of the following will occur in the long-run in this industry? Firms will exit this industry. This firm will incur losses. This firm will continue to earn positive economic profits. Firms will enter this industry. 40 10 30 20
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