Consider the following graph

Answer the

Question

Consider the following graph:

Answer the

following questions and explain your answer briefly.

i) Which panel(s) could represent a firm in monopolistic competition in the long run?

ii) Which panel(s) could not represent a firm in monopolistic competition in the short

run?

iii) Which panel(s) could represent a firm in monopolistic competition making a loss?

iv) Which panel(s) could represent a firm in monopolistic competition making a

positive economic profit?

Economics