Figure 16-2 This figure depicts a situation in a monopolistically competitive market. A graph of Price, P, versus Quantity, Q, shows a straight line, M R, decreasing linearly from (0, 100) to (50, 0), a second straight line, Demand, decreasing linearly from (0, 100) to (100, 0), a third straight line, M C, increasing linearly from the origin to (30, 90), and a curved line, A T C, decreasing from (10, 100) and then increasing to (50, 90). At Q = 20, M R = M C at $60, A T C is $70, and the point on the demand curve is $80. At Q = 25, M C = Demand at $75. At Q = 40, the point on the demand curve is at $60. Refer to Figure 16-2. Which of the following will occur in the long run in this industry? a. Firms will exit this industry. b. Firms will enter this industry. c. This firm will incur losses. d. This firm will continue to earn positive economic profits.