Practise interpreting monopolistic competition diagrams to locate profit maximisation, normal profit and short-run or long-run equilibrium.
The diagram illustrates the profit-maximising output for a street food seller in Taiwan operating in a monopolistically competitive market.
Which one of the following can be deduced from this information?
The street food seller is operating at the short-run equilibrium output
The street food seller is operating at the long-run equilibrium output
The street food seller is operating at the productively efficient level of output
The street food seller is operating at the allocatively efficient level of output