Question 1
A profit-maximizing monopolistically competitive firm ________
MR =
MC.
◦ shuts down when
◦ is completely efficient when
◦ produces where
◦ sells product at the price where
Question 2
If ________, then a profit-maximizing, monopolistically competitive firm earns negative economic profits.
◦
P >
ATC◦
P <
ATC◦
P =
ATC◦ All of these are possible.