A production possibilities curve that is \"bowed out\" or concave to the origin: 0 illustrates a tradeotf in which the opportunity cost of a good increases with the level of its production. 0 illustrates a tradeoff in which the opportunity cost of a good decreases with the level of its production. 0 illustrates a tradeotf in which the opportunity cost of a good is constant at all levels of production. 0 demonstrates the fallacy of composition. Assume that production of a good generates external benefits for others. The equilibrium price of the good will be and the equilibrium quantity for efficient resource allocation. 0 too high; too high. 0 too high; too low. 0 too low; too high. 0 too low, too low. The following diagram depicts firms in monopolistically competitive markets. MC AC $50 48- 45 34 THE Demand Marginal Revenue 4 7 111 10 Blue Jeans per Month (in thousands) Refer to Exhibit 14-4. If the firm maximizes profit, it will: O earn $64,000 in profit this month. O earn $112,000 in profit this month. O earn $30,000 in profit this month. O earn zero economic profits this month