Question:

If the Average Total Cost curve of a firm in monopolistic competition happens to beabove 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