MC ATC sour Price and cost (dollars) . . . ................. S urseHe . . ..! re MR la Cou Q . Qb Qc Quantity 4. How much output does the firm produce? a. Qa b. Qb C. QC d. None of the above5. What price does the firm charge? a. Pa b. Pb c. Pc d. None of the above 6. What type of profit or loss is the firm earning? a. An economic profit b. A normal profit c. An economic loss d. An accounting loss 7. In the long run, a. new firms will enter, and each existing firm's demand decreases. b. new firms will enter, and each existing firm's demand increases. c. existing firms will leave, and each remaining firm's demand decreases. vas d. existing firms will leave, and each remaining firm's demand increases. ro.com 8. A monopolistically competitive firm has excess capacity because in the a. short run MR = MC. b. short run the firm's average total cost does not equal the minimum average total cost. c. long run the firm's average total cost does not equal the minimum average total cost. d. long run the firm earns an economic profit