McqMate
| Q. |
If the Average Total Cost curve of a firm in monopolistic competition happens to be above the demand curve, it means: |
| A. | the firm will have to sell a lot in order to make a profit |
| B. | the firm will have to sell at a very high price in order to make a profit |
| C. | other firms are performing better in the market than the firm depicted in the diagram |
| D. | that firms in that industry will be incurring losses in the short run |
| Answer» D. that firms in that industry will be incurring losses in the short run | |
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