Under monopolistic competition, a market has__________

Group of answer choices

a single producer

many firms

a small number of very large firms.

any of these could occur under monopolistic competition.

Look at the figure below.

Which diagram is consistent with a monopolistic competitor making zero economic profit in the long run?

(a) (b) Price and cost (dollars per bike) 400- 120- Price and cost (dollars per printer) C 110 350 MC ATC MC 100 300 90 ATC 90 250- 70- 200- 60- 50- 150- 40 D 100- 30 20 50- MR MR 0 50 100 150 200 250 300 50 100 150 200 Quantity (printers per day) 250 300 Quantity (mountain bikes per week) (c) (d) Price MC ATC Price MC ATC P = ATC P = ATC = MC D = MR MR Q Efficient scale Quantity Q = Efficient scale Quantity