64 48 36 24 16 26. In the short run, a firm operating in a monopolistically competitive market a. produces an output level where marginal revenue equals average total cost. b. sets price equal to demand where marginal revenue equals marginal cost. c. must earn zero economic profits. d. maximizes revenues as well as profits. 8 27. a. 16 units. MC MR Demand 16 24 32 40 48 56 64 2 Refer to the figure above. The firm's profit-maximizing level of output is b. 24 units. c. 32 units. d. 48 units. a. $16. b. $24. c. $32. d. $36. 28. Refer to the figure above. In order to maximize profit, the firm will charge a price of 29. Refer to the figure above. If the ATC-40 at the profit-maximizing level of output, which of the following will occur in the long run in this industry? a. Firms will exit this industry. a. Firms will enter this industry. b. This firm will continue to earn positive economic profits. c. This firm will incur losses.