Refer to the above graph. Assume that in long-run equilibrium a purely competitive firm has the same cost curves as that of the monopolistically competitive firm shown. It can be concluded that the:
A. purely competitive producer would produce less at a higher ATC.
B. monopolistically competitive producer would produce less at a higher ATC.
C. purely competitive firm would have lower economic profits.
D. purely competitive firm would have higher economic profits.
Answer: B
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