A monopolistically competitive industry in the short run is

A monopolistically competitive industry in the short run is illustrated by the figure on the right with the demand ( D ), marginal revenue ( MR ), marginal cost ( MC ),and long-run average cost ( ATC ) curves for a representative firm. Suppose firms in this industry are initially producing such that they maximize profits.

Does this monopolistically competitive firm earn economic profits in the short run?

Using the rectangle drawing tool ?

shade in economic profits. Label your area either ‘Profit’ or ‘Loss’ to indicate whether the firm earns an economic profit or incurs an economic loss.

Carefully follow the instructions above and only draw the required object.