The diagram at right shows the structure of cost and demand facing a monopolistically competitive firm in the short run. The profit-maximizing output level is units of output. (Enter your response as an integer.) The profit-maximizing price is $. (Enter your response as an integer.) Total revenue is $ (Enter your response as an integer.) Total cost is $. (Enter your response as an integer.) Total profit or loss is $ (Enter your response as an integer and include a negative sign where appropriate.) In the long run, firms will OA. exit, shifting the demand facing the remaining firms to the right until the firms earn an economic profit. B. exit, shifting the demand facing the remaining firms to the right until the firms earn a normal profit. OC. enter, shifting the demand facing the remaining firms to the left until the firms earn a normal profit. OD. enter, shifting the demand facing the remaining firms to the left until the firms earn an economic profit. $14 $13 $12 $11 $7 MR 15 20 Quantity MC D ATC

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Question
The diagram at right shows the structure of cost and demand facing a monopolistically
competitive firm in the short run.
The profit-maximizing output level is units of output. (Enter your response as an integer.)
The profit-maximizing price is $. (Enter your response as an integer.)
Total revenue is $ (Enter your response as an integer.)
Total cost is $. (Enter your response as an integer.)
Total profit or loss is $ (Enter your response as an integer and include a negative sign
where appropriate.)
In the long run, firms will
OA. exit, shifting the demand facing the remaining firms to the right until the firms earn an
economic profit.
B. exit, shifting the demand facing the remaining firms to the right until the firms earn a
normal profit.
OC. enter, shifting the demand facing the remaining firms to the left until the firms earn a
normal profit.
OD. enter, shifting the demand facing the remaining firms to the left until the firms earn an
economic profit.
$14
$13
$12
$11
$7
MR
15
20
Quantity
MC
D
ATC
Transcribed Image Text:The diagram at right shows the structure of cost and demand facing a monopolistically competitive firm in the short run. The profit-maximizing output level is units of output. (Enter your response as an integer.) The profit-maximizing price is $. (Enter your response as an integer.) Total revenue is $ (Enter your response as an integer.) Total cost is $. (Enter your response as an integer.) Total profit or loss is $ (Enter your response as an integer and include a negative sign where appropriate.) In the long run, firms will OA. exit, shifting the demand facing the remaining firms to the right until the firms earn an economic profit. B. exit, shifting the demand facing the remaining firms to the right until the firms earn a normal profit. OC. enter, shifting the demand facing the remaining firms to the left until the firms earn a normal profit. OD. enter, shifting the demand facing the remaining firms to the left until the firms earn an economic profit. $14 $13 $12 $11 $7 MR 15 20 Quantity MC D ATC
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