These are the cost and revenue curves associated with a monopolistically competitive firm.
According to the graph shown, the monopolistically competitive firm will charge a price:
A. P3 in the long run, and earn zero profits.
B. P2 in the short run, and earn positive profits.
C. P2 in the long run, and earn zero profits.
D. P3 in the short run, and earn positive profits.
Answer: D
Economics
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