Figure 11.2Figure 11.2 shows demand and costs for a monopolistically competitive firm. At the profit maximizing output level:
A. the firm is earning a positive economic profit and more firms are expected to enter the market.
B. the firm is earning a zero economic profit and no firms are expected to enter the market.
C. the firm is earning a negative economic profit and more firms are expected to leave the market.
D. There is not sufficient information.
Answer: A
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