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Price, Cost MC ATC MR D QuantityBased on the information in the above graph describing a monopolistically competitive rm, which of the following is true? The rm is productively efcient since marginal cost intersects average cost at the minimum of average cost. When maximizing prots, this rm will have economic losses but will still continue to produce. The rm will produce where marginal revenue equals marginal cost and will set its price to equal average total cost. With the rm making economic prots, it can be expected that new rms will enter this market. The rm will produce where demand is inelastic to capture all economies of scale. @