Figure 11.1If Figure 11.1 depicts the current situation for a monopolistically competitive firm, then in the long run we expect:
A. the firm to charge a price higher than P1.
B. the firm to produce and sell more than Q1.
C. the firm's average cost of production to rise above AC1.
D. the firm to earn higher economic profits.
Answer: C
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What will be an ideal response?