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In the above figure, if the price is P_1, the firm is breaking even. making an economic profit. incurring an economic loss. shut down. As output increases, average fixed cost decreases, then increases. remains constant. always decreases. increases, then decreases. A perfect price discriminating monopoly produces the same output as a perfectly competitive industry but charges a lower price perfectly competitive firm. single-price monopoly but charges a higher price perfectly competitive industry In the long run, all firms in a monopolistically competitive industry earn zero accounting profit. an economic profit. negative accounting profit. zero economic profit. Unregulated monopolies cannot change the market quantity. take the market price an given. can influence the market quantity and price. cannot incorporate. A contestable market is one in which there are many firms and entry into the market is not costly. there are one or a few firms and entry into the market is not clearly. there are one or a few firms and entry into the market is costly. there are many firms and entry into the market is costly